Baghdad boosts electricity production with US deals

During Prime Minister Mohamed Shia Al-Sudani’s diplomatic visit to the United States, Iraq secured several key agreements in the energy sector, marking a significant step towards enhancing its electricity production capacity.

The Iraqi delegation, led by Al-Sudani, engaged in high-level talks, culminating in the signing of crucial memoranda of understanding. Among the notable developments was Baghdad’s announcement on Thursday detailing its strategy to bolster electricity generation.

Al-Sudani’s itinerary included a meeting with US President Joe Biden on Monday, followed by a series of signings on Wednesday, which encompassed agreements aimed at rehabilitating power infrastructure and optimizing gas utilization in oil fields. These initiatives are pivotal for Iraq, as its power plants heavily rely on gas imports from Iran, which have historically been subject to disruptions, leading to frequent power shortages.

Among the signed agreements is a memorandum of understanding with renowned US firm General Electric. According to Electricity Minister Ziad Fadel, this collaboration is expected to revitalize and modernize Iraq’s electricity sector over the next five years. The project targets eighteen power plants with a combined production capacity of 7,500 megawatts, with provisions to add an extra 3,000 MW to the national grid, significantly augmenting Iraq’s overall electricity output.

Iraqi authorities stress that a daily national production of at least 32,000 MW is imperative to avert rolling blackouts. Despite reaching a milestone of 26,000 MW last year, the nation continues to grapple with electricity shortages due to a combination of factors, including conflict legacies, sanctions, corruption, and decaying infrastructure. The severity of power outages is particularly acute during the scorching summer months when demand for cooling systems surges.

Prime Minister Al-Sudani has consistently emphasized the urgency of diversifying Iraq’s energy sources to mitigate the persistent electricity deficits. In a bid to address this challenge, Baghdad announced plans in late March to establish a power line linking Iraq to neighboring Jordan. Additionally, an initiative is underway to connect southern Iraq to Kuwait, with an initial phase slated to commence in late 2024, importing approximately 500 MW of electricity.

The recent agreements with US companies underscore Iraq’s commitment to fortifying its energy infrastructure and overcoming longstanding electricity shortages. These developments represent significant strides towards achieving energy security and fostering socio-economic development in Iraq, albeit amidst persistent challenges. As Baghdad endeavors to expand its electricity production capacity, collaboration with international partners emerges as a cornerstone of its strategy to address the nation’s energy needs and propel its growth trajectory forward.