Iraq power sector turns a page
12 May 2025
In April and May, the world’s top gas turbine original equipment manufacturers signed preliminary agreements with the Iraqi government to build or add a combined total of 38GW of power generation capacity in Iraq, which is more than the country’s known installed capacity.
US-based GE Vernova has agreed to build up to 24GW of combined-cycle gas turbine (CCGT) power plants in the country, while Germany’s Siemens Energy will develop about 14GW.
Separately, several gigawatts of solar photovoltaic (PV) plant projects are in various stages of implementation, or are being negotiated by the Iraqi government and private developers and investors such as the UAE’s Abu Dhabi Future Energy Company (Masdar), France’s Total Energies, QatarEnergy and US-based UGT Renewables.
There is also a plan to roll out a major solar procurement round this summer, in which 150 companies have reportedly expressed interest in bidding.
“There was a meeting over a month ago, where the prime minister instructed the governors to allow investors to negotiate with the local governments to build solar and wind farms and connect these to low- to medium-voltage grids,” says an Iraq energy expert based outside the country.
This helps to explain the announcement made by Wasit Province in early May, which said it has launched tenders for 25 solar and wind projects with a combined capacity of 3GW.
Yet, the fact remains that Iraq has virtually zero operational solar or wind power capacity on its grid to date, and continues to experience extended power outages, particularly in the summer months, when peak demand outstrips available capacity.
“It feels like we’ve been here before," the independent consultant says, noting that he has heard similar announcements and deals in the past few years.
“The main difference that we’re looking for is the seriousness and political will to implement and execute these proposed projects, which will have to include establishing funding sources.”
Many share the same sentiment, due to the slow pace of project implementation following years of intermittent and violent conflicts in parts of the country.
This makes it easy to overlook some of the recent advances that have been made on certain projects in Iraq's power sector.
Firms including GE Vernova and Siemens Energy, as well as a significant number of Chinese engineering, procurement and construction (EPC) contractors, have been making progress on projects to rehabilitate or modernise existing electricity generation plants, while several greenfield projects are also being planned or negotiated.
Siemens Energy broke ground on a new CCGT plant in Nasiriyah in Iraq’s southern Dhi Qar Governorate in early April. Meanwhile, GE Vernova is carrying out a project at the 1,250 MW Bazyan power plant, in the Iraqi Kurdistan region, to complete the first upgrade of the advanced gas proven technology running on its 9E.03 gas turbine fleet.
The winning contractor for Iraq’s first waste-to-energy (WTE) public-private-partnership project, Shanghai-based SUS International, also broke ground on the project in late March.
Waste-to-energy
The pace at which the contract to design, build, own and operate Iraq’s first WTE project was tendered and awarded defied expectations: the process of prequalifying bidders began in August 2022, the contract was awarded in January 2025 and the project broke ground three months later.
Located in Nahrawan, in Baghdad, the estimated $500m project will have a design capacity of 3,000 tonnes a day (t/d).
The facility will feature three incineration lines and a 100MW steam turbine generator set, and is expected to generate 780,000 megawatt-hours (MWh) of electricity a year.
The project has a two-year construction period and a 25-year investment period.
Baghdad Municipality will provide 3,000 t/d of municipal solid waste, and the energy purchase fee will be based on committee recommendations, covering landfill costs and environmental and public health requirements.
Payment will be managed by the ministries of health, electricity and the environment, as well as Baghdad Municipality, for a maximum production of 100MW, with further negotiations required if production exceeds this limit.
The Iraqi cabinet has authorised the National Investment Commission to issue the investment licence for the project and sign the contract with the winning bidder, SUS Environment.
Artawi solar project
The highly anticipated 1GW solar project in the southern Basra region has also reached the construction stage.
The project is a key part of TotalEnergy’s $27bn energy projects programme in Iraq, which includes a treatment facility for associated natural gas from five southern oil fields – West Qurna 2, Majnoon, Artawi, Tuba and Luhais; the $4bn common seawater supply project; and the development of the Artawi oil field.
In August last year, TotalEnergies awarded China Energy Engineering International Group the EPC contract for the project at the Artawi field, which is also known as Ratawi.
A month later, QatarEnergy signed an agreement with TotalEnergies to acquire a 50% interest in the project, with TotalEnergies retaining the remaining 50%.
The 1GW Artawi solar scheme will be developed in phases that will come online between 2025 and 2027. It will have the capacity to provide electricity to about 350,000 homes in Iraq’s Basra region.
The project, consisting of 2 million bifacial solar panels mounted on single-axis trackers, will include the design, procurement, construction and commissioning of the PV power station site and 132kV booster station.
Multi-faceted issue
Addressing Iraq’s significant power deficit – which some estimates put at up to 29% – carries major geopolitical, economic and sustainability implications.
The US and its Gulf allies are keen to wean Iraq off its dependence on energy imports from Iran. Efforts to achieve this include a project to interconnect Iraq's electricity grid with that of the GCC Interconnection Authority.
Moreover, Iraq's overall recovery and political stability rely on the reconstruction of its infrastructure, from roads, railways and ports to schools, healthcare facilities and water and sanitation projects. All of these require a reliable power supply, which, in turn, will further drive electricity demand.
In addition to deploying renewable energy to meet future demand, Iraq has initiated steps to explore the development of a power generation plant using flare gas.
In March last year, the Electricity Ministry signed a preliminary agreement with Siemens Energy and US firm SLB, formerly Schlumberger, to explore such a project.
To be located in Southern Iraq, the planned flare gas-to-power project will help reduce carbon dioxide emissions and capture value from gas that would otherwise be wasted.
MEED understands the planned flare gas-to-power plant could have a generation capacity of up to 2,000MW, and may require 250 million standard cubic feet of gas a day.
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MEED’s July 2025 report on the Levant includes:
> COMMENT: Levant states wrestle regional pressures
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