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Iraq approves over 10,000MW of new power projects

28 August 2025

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Iraq’s government has approved five major power generation projects, with a combined capacity exceeding 10,000MW.

The approvals were issued during a meeting of the cabinet on 26 August, as reported by the prime minister’s media office.

The projects are led by three major independent power producer (IPP) combined-cycle plants at Al-Faw, Abu Ghraib and Kirkuk, totalling 7,500MW. These form the centrepiece of the government’s plan to expand capacity and secure long-term power supply for the country.

A 3,000MW combined-cycle plant at Al-Faw in southern Iraq, which will be developed by UAE-based Superior Technology Systems, and another 3,000MW facility at Abu Ghraib near Baghdad, which is to be developed by Emirate Technology Company, will be implemented under 25-year build-own-operate models.

In northern Iraq’s Kirkuk, Pure Energy will develop a 1,500MW combined-cycle plant. Unlike the Al-Faw and Abu Ghraib plants, the Kirkuk project will rely solely on natural gas supplied by either the Ministry of Oil or the Ministry of Electricity, following the same phased construction and commissioning timeline.

All three combined-cycle power projects will operate under long-term power purchase agreements, backed by sovereign guarantees from the Ministry of Finance, and will be developed in cooperation with New York-listed GE Vernova, which will supply advanced combined-cycle technology and technical support.

Both the Al-Faw and Abu Ghraib projects will utilise liquefied natural gas (LNG) reception infrastructure at Al-Faw Grand Port. This includes a jetty, a floating storage and regasification unit, and connecting pipelines – 17 kilometres at Al-Faw and 130km at Abu Ghraib. Each plant will be allocated about 400 million standard cubic feet a day of natural gas, supplied as imported LNG.

Commissioning will be phased, with simple-cycle operations targeted within approximately 30 months of financial close, and full combined-cycle output expected within 48 months.

Thermal power plants

The Iraqi cabinet also approved the development of two thermal power plants, one in Najaf and the other in Yousifiya, with output capacities of 1,500MW and 1,800MW, respectively.

Iraq’s latest round of power plant approvals signals a turning point in its bid to modernise the electricity network.

According to the Minister of Electricity, Iraq’s electricity production has risen to 28,000MW from 19,000MW in 2022.

In a presentation to the Council of Ministers, the electricity minister outlined the current status of power generation projects, including production, implementation progress and operational readiness.

The council also reviewed ongoing projects with a combined capacity of 15,000MW. This comprises solar, thermal and combined-cycle plants.

In addition to the 10,000MW first phase of investment projects, contracts have been signed with international firms, including Siemens Energy, for projects totalling 15,000MW, and GE Vernova, for projects with a combined capacity of 24,000MW.

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Mark Dowdall

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