Iraq has been facing a severe power crisis since 2003 and is projected to surge in the long run. Efforts so far had been focusing on the supply side, while neglecting an equally important aspect of improving the energy efficiency on the demand side. The technical and commercial losses exceed 50 percent of the generated power. The majority of the losses are in the residential sector, which represents the highest energy consumer from the demand side. This report discusses the current status of energy efficiency in the residential sector of Iraq including policies and regulatory setup. The institutional, financial and technical barriers are discussed which could form an overarching basis to the core principle of transition towards a common vision of environmental protection, emissions reduction, resource efficiency, security of supply and consumer protection.