- Iraq signed a deal with GE Vernova to develop 24,000 MW of natural gas power plants to reduce dependence on Iranian energy.
- The country also signed an MoU with UGT Renewables for a 3,000 MW solar project, alongside plans to upgrade transmission networks.
- The agreements come as Iraq faces an energy deficit and pressures from the US to eliminate reliance on Iranian gas imports.
Iraq signed a significant agreement with GE Vernova to develop 24,000 MW of natural gas power plants. This deal aims to reduce Iraq’s reliance on Iranian energy imports.
The Iraqi Minister of Electricity, Ziyad Ali Fadel, and a GE Vernova representative attended the signing ceremony in Baghdad. Prime Minister Mohamed Chia al-Soudani also participated. The project, Iraq’s largest energy initiative, will receive financing from international banks.
The signing occurred during a visit by a US trade delegation of 60 companies led by the US Chamber of Commerce. This event marks the most significant American business initiative in Iraq.
Iraq faces a persistent energy deficit despite its vast oil reserves. Its current power generation capacity is 16,000 MW, but the country needs up to 55,000 MW during peak summer demand when temperatures exceed 50°C.
Iraq aims to diversify its energy sources through the agreement with GE Vernova. The country depends heavily on Iranian gas imports, which have been inconsistent. Washington has long urged Baghdad to reduce its reliance on Iran.
In March, the US declined to renew a waiver allowing Iraq to import electricity from Iran. This decision forces Iraq to seek alternative energy sources and strive for energy independence.
Iraq’s energy sector suffers from an ageing infrastructure. The new agreement with GE Vernova will modernize the industry, improving Iraq’s power generation system’s reliability and capacity.
The agreement reflects Iraq’s broader strategy to strengthen ties with the United States while reducing dependence on Iran. The country seeks to collaborate with advanced technology providers to overhaul its energy sector.
Iraq also signed an MoU with UGT Renewables, a solar energy company, alongside the gas power agreement. This MoU covers a 3,000 MW solar project, including 1,000 kilometres of high-voltage power lines.
The solar initiative will also focus on upgrading Iraq’s transmission and distribution networks. This will help Iraq efficiently distribute the increased power generation across the country.
Farhad Alaaldin, the Iraqi Prime Minister’s foreign affairs adviser, emphasised the government’s commitment to stabilizing the electricity supply and the importance of working with companies that provide the necessary technology for sectoral reconstruction.
The new agreements demonstrate Iraq’s ambition to improve its energy independence and infrastructure. These projects are crucial for securing a more reliable and sustainable power supply as Iraq faces growing energy demands.
Iraq’s energy challenges remain significant, but the agreements with GE Vernova and UGT Renewables mark a promising step toward addressing power shortages. These initiatives reflect Iraq’s determination to balance international relationships while modernising its energy sector.
The agreements are crucial for Iraq as it navigates energy security and geopolitical tensions. By diversifying its energy sources, Iraq aims to strengthen its position as an energy producer and reduce its vulnerabilities associated with foreign energy imports.