Meed | Iraq approves long-term grid expansion

Iraq approves long-term grid expansion

14 February 2024

Iraq has approved funds for long-term plans to expand the country's power transmission and distribution network with the help of Germany’s Siemens Energy.

Electricity Ministry spokesperson Ahmed Mousa told the Iraqi News Agency that the plans include the development of power distribution, the upgrade of electricity systems and the maintenance of cables and other equipment used in the national electricity grid.

Mousa said the ministry "received funds for long-term plans to develop the electricity sector in 2023 … the three-year budget approved in 2023 also includes funds this year and in 2025”.

It is understood that Siemens Energy has signed a contract to utiise gas in the running of power stations in Iraq, as well as in the construction of new power stations operating on associated gas.

"We are looking forward to expanding our partnership with Iraq and supporting the development of increased electricity capacity and access for Iraqis," a Siemens Energy spokesperson tells MEED.

Iraq’s power generation capacity reached more than 18,500MW in 2019, about 6,000MW short of peak demand.

The country imports an average of 1,200MW of electricity a year from Iran to augment supply.

In January, it was reported that Iran reduced its gas supply to Iraq from 50 cubic metres a day (cm/d) to 10 cm/d, causing Iraq's power grid to lose 4,000MW.

Reports indicated that maintenance work at Iran's key gas facilities, which was expected to last until this month, triggered the sharp decline in gas supplies to Iraq.

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Jennifer Aguinaldo