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GE plans multiple Iraq power facilities

17 February 2023

US-headquartered GE and Iraq's Electricity Ministry (MoE) have agreed to pursue new projects to boost the country's electricity infrastructure.

The parties announced signing principles of cooperation (PoC) for Iraq's energy sector on 16 February.

The initiative aims to explore opportunities including:

  • establishing new power plants and expanding capacity at existing facilities
  • maintaining and rehabilitating installed power generation and transmission infrastructure
  • establishing new substations to relieve grid congestion across various directorates
  •  enhancing the inter-connectivity between the Jordanian and Iraqi electricity grids
  • driving the decarbonisation of Iraq's energy sector

As part of a services agreement being assessed under the PoC, the MoE and GE also plan to further strengthen local capabilities by setting up a centre of excellence that includes a monitoring and diagnostics facility for the MoE’s fleet, as well as a training centre for its staff.

Iraq’s power generation capacity reached more than 18.5GW in 2019, which is about 6GW short compared with peak demand.

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

Energy transition

In July 2021, GE announced an energy transition plan for Iraq that includes a potential 20 per cent reduction in carbon dioxide emissions and the generation of an additional 10GW of power by capturing flared gas.

The plan entails converting simple-cycle gas turbine power plants into combined-cycle facilities, as well as the displacement of inefficient power generation fleet.

GE also proposed the use of hydrogen for power generation alongside carbon capture technologies, in order to potentially "remove up to 90 per cent of carbon emissions from gas turbine exhausts".

In April 2021, the Iraqi Finance Ministry, GE and their financial partners reached financial close for a loan agreement for Iraq’s Power Up Plan 4 (PUP4) project.

Under PUP4, GE will provide capital and spare parts, repairs and services to the Qudus, Khairat, Baghdad South, Hilla, Mussayab, Haidariya and Karbala power plants. Its services are expected to help maintain more reliable generation of up to 2,700MW of electricity.

According to GE, 20 gas turbines that are currently not operational at these sites will also be returned to service.

Several key repairs for the gas turbines were to be undertaken at GE’s service centre in Jebel Ali Free Zone in Dubai. The UAE’s federal export credit company, Etihad Credit Insurance (ECI), helped to facilitate this.

ECI is also one of the debt reinsurers for PUP4, providing insurance coverage to the lender, JP Morgan.

PUP4 is the first Iraqi project supported by ECI and opens the doors to further collaborations between the UAE and Iraq, GE said at the time.

Photo: GE

https://image.digitalinsightresearch.in/uploads/NewsArticle/10605827/main.jpg
Jennifer Aguinaldo

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    This is an improvement on the performance of the previous two years, which saw very limited project activity within the sector, with contract awards valued at just $104m in 2021 and $244m in 2022.

    Having adopted a policy to not procure further gas-fired thermal power plants, Oman awarded the contracts to develop its second and third utility-scale solar photovoltaic (PV) plants in early 2023.

    The Manah 1 and 2 solar PV independent power projects (IPPs) each have a capacity of 500MW. Wadi Noor Solar Company, comprising France’s EDF Renewables and South Korea’s Korea Western Power Company (Kowepo), will deliver and maintain the Manah 1 solar IPP project for 20 years.

    Another team, comprising Singapore’s Sembcorp Industries and China-headquartered Jinko Power Technology, will develop the Manah 2 IPP scheme. The country’s first utility-scale solar project, Ibri 2, became operational in 2021. 

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    Most of this growth is expected to occur in the near term, as the economy recovers from the effects of the Covid-19 pandemic, according to PWP’s most recent Seven-Year Statement, which covers the years 2023-29. It is also higher compared to the 2.5 per cent average annual peak demand growth rate seen between 2015 and 2022.

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    Annual peak demand growth in the smaller Dhofar grid is expected to average 5 per cent between 2022 and 2029.

    The first phase of Oman’s North-South Interconnection project, known as Rabt, became operational in November. The 400-kilovolt (kV), 670-kilometre (km) project required an investment of about $966m.

    The first phase of Oman’s North-South Interconnection project, known as Rabt, became operational in November

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    Also part of Rabt's first phase, the isolated networks of Petroleum Development Oman and the Rural Areas Electricity Company (Tanweer) in Duqm SEZ, have been interconnected.

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    In addition to the second phase of Rabt, Oman is in the early procurement phase of several solar and wind projects, in line with meeting demand growth and replacing expiring contracted capacity.

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    https://image.digitalinsightresearch.in/uploads/NewsArticle/11354147/main.jpg
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    Register for MEED’s guest programme 

    The team of US-based Hill International, Italy’s Italferr and Spain’s Sener has been awarded the contract to provide project management services for the estimated $7bn Saudi Landbridge project.

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    https://image.digitalinsightresearch.in/uploads/NewsArticle/11354086/main.jpg
    Colin Foreman