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Iraq and PowerChina sign 750MW solar contract

30 October 2023

The Iraqi Electricity Ministry, through the Southern Electricity Production Company, has signed an implementation agreement with PowerChina for a 750MW solar power plant project in the Al-Muthanna governorate.

The directly negotiated contract will be located in Samawah. 

Iraqi Electricity Minister Ziad Ali Fadel witnessed the signing of the contract, the Iraqi News Agency reported on 25 October.

MEED reported in May this year that the Iraqi cabinet had approved the project, which will require an investment of $520m.

The Iraqi government signed an initial agreement with PowerChina to build solar power plants across the country with an expected capacity of 2,000MW, as MEED reported in August 2021.

The first solar plant from the programme is expected to contribute to "increasing the energy produced to maintain the system’s momentum, reduce operational expenses for purchasing fuel, ensure environmental safety, reduce emissions and exploit renewable energies".

A section of the Samawah solar power plant is expected to be connected to the grid in the summer of 2024. 

Ali Fadel said other similar projects are going ahead, including a 1,000MW scheme that French energy firm TotalEnergies is planning to develop in the country.

He said that the French company will be working with the local Al-Bilal Group to implement the project.

Agreements for solar power generation plants with a total combined capacity of over 5,000MW were signed between 2021 and 2022 in Iraq.

In addition to the preliminary agreements signed with PowerChina and Total Energies, the ministry has signed deals for 2,000MW solar power plant projects with UAE-based Abu Dhabi Future Energy Company (Masdar) and 525MW with a team led by Norway’s Scatec.

Scatec, however, withdrew from the consortium that agreed to develop two solar projects with a total combined capacity of 525MW in Iraq.

Scatec was to develop the Karbala and Iskandariya solar independent power projects along with Egypt’s Orascom and local firm Iraqi al-Bilal. 

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

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

Photo: INA

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Jennifer Aguinaldo

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