Iraq signed non-binding agreements with two U.S. companies to add 27 gigawatts to its power capacity. The government inked a Memorandum of Understanding with GE Vernova Inc. to build 24 gigawatts of combined-cycle gas power plants, marking the largest and most modern plan in Iraq’s history, with potential external financing from international banks.
The new plants will generate 8 gigawatts without fuel and 16 gigawatts using natural gas and other fuels, according to Electricity Minister Ziad Ali Fadhil. Iraq’s power demand could reach 55 gigawatts in summer, while its current capacity ranges from 16 to 26 gigawatts, depending on gas availability.
In March, Oil Minister Hayyan Abdul Ghani discussed securing two floating storage regasification units by June after the U.S. ended a waiver that allowed Iraq to buy electricity from Iran, leading to power shortages.Iraq’s Ministry of Electricity signed an MoU with UGT Renewables for a 3-gigawatt solar project, funded by the US Export-Import Bank, UK Export Finance, and JPMorgan.
The agreement includes a two-year period for tech transfer, training, and maintenance. The US Embassy in Baghdad stated the deals with GE Vernova and UGT Renewables are worth billions, but costs and timelines are unclear.
