Legal Regulation of Investment in Renewable Energy Projects: A Comparative Study Between Iraqi Legislation and Iranian Law

Abstract

This article examines the legal regulation of investment in renewable energy projects through a comparative study of Iraqi legislation and Iranian law. The study is based on the premise that renewable energy investment requires more than policy support; it requires a coherent legal framework capable of ensuring regulatory stability, investor protection, bankable contractual arrangements, transparent licensing, environmental compliance, and effective dispute settlement. Iraq and Iran both possess considerable renewable energy potential and both face rising electricity demand, environmental pressure, and the strategic need to diversify energy systems historically dependent on fossil fuels. However, their legal and institutional challenges differ. In Iraq, renewable energy investment is affected by administrative fragmentation, electricity-sector weakness, institutional overlap, political risk, and the need to transform general investment guarantees into project-specific legal protections. In Iran, the principal challenges concern regulatory instability, financing restrictions, sanctions-related barriers, currency and payment risks, and the need to strengthen the enforceability of long-term power purchase commitments. The article analyzes the conceptual foundations of renewable energy investment, the Iraqi legal framework, the Iranian legal framework, and the comparative strengths and weaknesses of both systems. It argues that successful renewable energy investment regulation must integrate investment law, energy law, environmental law, administrative law, and contract law within a unified legal strategy. The findings indicate that Iraq requires a more consolidated renewable energy legislative framework, while Iran requires stronger regulatory stability and financial credibility. The article concludes that both legal systems should adopt transparent licensing procedures, standardized power purchase agreements, protected grid-access rights, clear environmental approval mechanisms, effective incentives, and reliable dispute-resolution structures to attract sustainable domestic and foreign investment in renewable energy projects.