
Iraq signed non-binding agreements with two American companies to add 27 gigawatts to its power production capacity in an effort to address increasing demand for electricity.
The government on Wednesday inked a Memorandum of Understanding with GE Vernova Inc. to build combined-cycle gas power plants with a capacity of approximately 24 gigawatts, according to a statement by the office of Prime Minister Mohammed Shia Al-Sudani.
The plan, which the statement described as the “largest and most modern” in the country’s history, offers the possibility of securing external financing from international banks.
The new plants will produce around 8 gigawatts without consuming fuel and generate the remaining 16 gigawatts using natural gas and other types of fuels, Electricity Minister Ziad Ali Fadhil said in a statement after the signing.
Iraq’s power demand is expected to reach as much as 55 gigawatts in the summer while the country’s current capacity ranges from 16 gigawatts to 26 gigawatts depending on the availability of gas, the Electricity Ministry previously said.
In March, Iraqi Oil Minister Hayyan Abdul Ghani revealed talks with several companies to secure two floating storage regasification units by early June, after the US decided not to renew a waiver that allowed OPEC’s second-biggest producer to buy electricity from Iran. The decision, aimed at pressuring Tehran into negotiating a new nuclear deal, caused Iraq to suffer power shortages.
The Iraqi Ministry of Electricity penned another MoU with UGT Renewables to establish a 3-gigawatt integrated solar energy project, for which the US Export-Import Bank, the UK Export Finance and JPMorgan will provide financing. The agreement includes a two-year period for technology transfer, training, operation and maintenance, said the Iraqi Premier’s office.
The US Embassy in Baghdad said on X Iraq’s agreements with GE Vernova and UGT Renewables are worth billions of dollars, without revealing further details.
The exact cost and timeline of the projects remain unknown.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
MORE FROM THIS AUTHOR
Bloomberg