Electricity In Iraq


Gas Imports from Iran Interrupted

By John Lee.

Gas exports from Iran to Iraq have reportedly been interrupted as authorities in Iran repair pipeline damage caused during a recent earthquake.

The gas is used for electricity generation, with the cut reducing available power by 2,500 megawatts (MW).

Supplies are expected to be restored over the coming days.

(Sources: Iraq Oil Report, Reuters)

(Picture: Iran-Iraq gas pipeline during construction. Picture credit: Shana)

GE, Standard Chartered, TBI close $600m Financing

By John Lee.

General Electric (GE), Standard Chartered Bank and the state-run Trade Bank of Iraq (TBI) are reported to have jointly closed a $600-million financing agreement to fund the ambitious electricity project ‘Power Up Plan’ in Iraq.

According to Trade Arabia, the project will be implemented in two phases, providing more than 2 gigawatts (GW) of new power, and ensuring continuity of supply of up to 6.7 GW to Iraq’s grid.

The financing arrangement is said to be the largest bespoke Letter of Credit (LC) confirmation and discounting transaction of its kind in the region.

(Source: Trade Arabia)

ABB to complete Iraq Projects by 2024

By John Lee.

ABB is reportedly targeting 2024 for the completion of energy projects in Iraq.

Its managing director for the Middle East, Mostafa Al Guezeri, told The National that the Swiss-Swedish company is in the planning stage for its $1.2-billion work in the country.

He added that the company was committed to spending more on Iraq by helping the country access finance, saying “Iraq is one of the most important countries for us.

(Source: The National)

S Korea wins $500m Deal for Electricity in Iraq

By John Lee.

South Korea’s STX Marine Service has reportedly won a contract to restore and operate diesel-fueled electric power plants in Iraq.

According to Yonhap, the company said the US$500-million deal will see it four 900-megawatt electricity generation units over five years.

It calls for 100 South Korean engineers to be dispatched by STX, along with the hiring of 500 local workers.

The company said work started on 1st July.

(Source: Yonhap)

Siemens, GE must share Iraq Electricity Deal

By John Lee.

Both Germany’s Siemens and US-based GE have signed deals with the Iraqi government on Sunday to provide major additional power generating capacity to Iraq.

Following a hotly-contested competition, the two rivals are to share the work, with GE supplying 14 Gigawatts (GW), and Siemens 11 GW.

(Sources: GE, Siemens)

GE Wins 14GW Iraq Power Contract

GE (NYSE: GE) signed Principles of Cooperation (POC) with the Iraqi Ministry of Electricity to develop the country’s power sector.

The plan is expected to generate up to 14 gigawatts (GW) of power, create up to 65,000 direct and indirect jobs, support the government to realize savings and recoverable losses of up to $3 billion per year, establish a local technology center and support water and healthcare access.

The POC was signed by Minister Qasim Al Fahdawi, Iraq’s Minister of Electricity, and Joseph Anis, President & CEO of GE’s Power Services in Africa, South Asia and the Middle East. The comprehensive plan builds on GE’s legacy of continuous presence and commitment to bring progress to the people of Iraq over the past 50 years, and is comprised of the following key tenets:

  1. Supporting the path to energy security with 14 GW. As an immediate priority, GE will deploy proven fast power technologies and undertake upgrades at existing power plant sites to bring approximately 1.5 GW of additional power online by 2019 – the equivalent electricity needed to supply up to 1.5 million Iraqi homes, as well as undertake maintenance and rehabilitation services to secure the availability of another 7 GW that are currently operating. In addition, the agreement includes upgrades and services for existing power plants; the conversion of simple cycle power plants to combined cycle, which can help bring new power online without consuming additional fuel or releasing further emissions; as well as the establishment of new power plants with efficient, reliable power generation technology. Furthermore, GE will develop substations and overhead lines across the country, and a centralized energy management system covering generation, transmission and distribution. These initiatives will add up to 14 GW of power and strengthen grid connectivity.
  2. Realizing $3 billion in savings and recoverable losses annually. Overall, GE’s activities will help the Government realize savings and recover losses of up to $3 billion per year. Repairs, maintenance, upgrades and other services will help to reduce the operating costs of existing power plants. To further improve the transmission and distribution of power, GE will undertake comprehensive decongestion network studies, as well as advisory services to reduce collection recoverable losses. In addition, GE is offering its unique solution for integrating the capture of flared gas and power generation using GE’s advanced Gas to Power technologies. In July, Baker Hughes, a GE company signed a contract with the Iraqi Ministry  of Oil for a modular natural gas plant solution for flared gas recovery in the Nassiriya and Al Gharraf oilfields.

GE will assist the Government of Iraq to unlock financing for these projects through its extensive relationships with Global Export Credit Agencies and financial institutions.

As part of the proposals included in the POC, as well as GE’s commitment to a shared future and the progress of the Iraqi people, the company also expects to:

  1. Build local capabilities. GE plans to establish a local Technology Center comprising of a Repairs Center, a Monitoring & Diagnostics Center and a Training Center.
  2. Contribute towards providing critical services to local communities. GE intends to supply three trailer-mounted mobile water treatment units to help deliver drinking water to contribute to the everyday needs of the people of Basra. The company also plans to provide neonatal intensive care equipment and advanced medical care training for nursing staff at a neonatal intensive care center to meet the need for specialized healthcare services.

Mussab Almudaris, official spokesperson of the Iraqi Ministry of Electricity, said, “Our focus is on rebuilding Iraq to provide stable, sustainable development for our people, and developing the electricity sector is a critical component of these efforts. GE’s action plan is an ideal fit for our needs, offering a holistic package that brings industry-leading technologies, financing and social services to meet our most critical immediate and long-term needs.”

Russell Stokes, President & CEO of GE Power said, “Our presence in Iraq is based on a history of trust, partnership and success that spans over 50 years. We are honored to support the government’s focus on rebuilding Iraq, and we are proud of our legacy of delivering power where needed in the country. We understand how important it is to deliver power immediately and our holistic action plan brings together advanced solutions, financing, local investments, trainings and social services that are expected to benefit families, businesses and industries across Iraq.”

GE employs up to 300 people in Iraq and has three offices in the country – in Baghdad, Basra and Erbil. Today, GE and its partner CFMI power more than 90 percent of the aircrafts operated by Iraqi Airways, the company’s technologies contribute up to 55 percent of the current electricity production in Iraq and nearly 4,000 GE Healthcare products are deployed in hospitals and clinics across the country.

(Source: GE)

Siemens Wins 11GW Iraq Power Contract

Siemens in landmark MoU to repower Iraq, support economic prosperity

Siemens and the Ministry of Electricity of the Republic of Iraq have entered a milestone agreement to seek the implementation of the company’s roadmap for repowering Iraq. Signed by Qasim Al-Fahdawi, Minister of Electricity, and Joe Kaeser, President and CEO of Siemens AG, the Memorandum of Understanding (MoU) will examine a series of short, medium and long-term plans to meet the reconstruction goals of Iraq and support the country’s economic development.

“Our commitment to the Iraqi people stands strong. We promised them to achieve affordable and reliable power supply, help with anti-corruption, build schools and hospitals and create thousands of jobs. Education, training and developing local skills and talent are key elements for us to contribute to building the New Iraq. Today’s agreement on the Siemens roadmap is a significant step towards fulfilling that promise,” said Joe Kaeser. “We are ready to start and look forward to working closely with the Iraqi government to immediately produce noticeable improvements for the Iraqi people.”

In September, Siemens announced the donation of a smart health clinic that would be powered by solar energy and equipped with Siemens medical devices. The clinic would have the capacity to treat up to 10,000 patients per year. This was in addition to pledging to fund the first modular “School of the Future” in Iraq, provide a USD 60 million software grant for universities in the country, and train more than 1,000 Iraqis in vocational education.

Under the “Roadmap for the Electrification of the New Iraq”, Siemens is ready to add 11 gigawatts (GW) of power generation capacity over four years to ensure 23 million Iraqis across the country have reliable and sustainable electricity 24/7. This would boost current generation capacity by almost 50 percent. The economic viability of the plan is secured by billions of US dollars in potential fuel savings and revenue generation for the electricity sector, supporting the development of the future Iraq. The company also envisions the creation of tens of thousands of jobs over the course of the projects. The roadmap emphasizes people at its core – and is the result of a 12-month study to develop a comprehensive and tailored redevelopment plan. It focuses on energy, education, compliance and financing, aiming to advance sustainable economic development, national security and quality of life for the people of Iraq.

Siemens’ Iraq Roadmap outlines eight objectives to benefit the people of Iraq, the country’s national security and its economic development. These include reducing energy losses, introducing smart grids, strengthening the transmission grid, modernizing existing power plants, adding new generation capacities in deprived areas, connecting Iraq to the Arab Gulf region, putting Iraq’s national resources to work, and investing in its people.

Modernizing the country’s energy infrastructure is intended to be completed in stages, from immediate improvement for up to 300,000 people, which can be operational within three months, to medium and long-term projects that require between 10 and 24 months’ completion time and beyond. The company will also assist Iraq’s government in securing appropriate finance packages provided by international commercial banks, Export Credit Agencies and supported by the German Government.

The roadmap lays out plans to use Iraq’s valuable natural resources more efficiently by utilizing flare gas capture and treatment technologies to deliver a domestic source of fuel to Iraq’s power generation sector, as well as create a long-term source of revenue for the government to finance power generation, transmission, and distribution projects.

As part of its commitment to driving sustainable growth, Siemens intends to support social development in Iraq with a series of training and education programs. This includes technical and vocational training as well as transparency and anti-corruption education, in order to build a pool of highly skilled, local talent with a culture of compliance. Under the patronage of the German Federal Ministry for Economic Cooperation and Development (BMZ), Siemens aims to provide vocational training, starting with 1,000 young Iraqis.

Siemens initially presented the Roadmap to the Government of Iraq during the Iraq Reconstruction Conference in Kuwait, in February 2018. At the same time, the company signed a declaration of intent with BMZ with both parties agreeing to jointly contribute to the reconstruction and development of Iraq in areas including technical and vocational training, as well as transparency and anti-corruption.

(Source: Siemens)

Siemens may have to share $15bn Power Deal with GE

By John Lee.

Germany’s Siemens may have to share a $15-billion contract to supply power-generation equipment to Iraq with US rival General Electric (GE).

The Financial Times reports that although it appeared that Siemens would win the deal, the Trump administration successfully intervened on behalf of GE.

Last month German business newspaper Handelsblatt reported that Chancellor Angela Merkel had personally intervened with Prime Minister Haider al-Abadi to persuade the Iraqi Government to award the contract to Siemens.

(Source: Financial Times)

12 Projects to Improve Essential Services in Iraq

The Federal Republic of Germany, UNDP’s Iraq Crisis Response and Resilience Programme (ICRRP), along with the administrative authorities of Halabja and Sulaimaniyah Governorates and Garmiyan and Raparin Administrations today initiated 12 projects to improve essential services for an estimated 680,000 people.

The projects target critical needs in the electricity, water, roads, and sewerage sectors and provide jobs for 819 people – including host community members, Syrian refugees and IDPs.

At the ceremony to launch the projects, the Deputy Governor of Sulaimaniyah, H.E Mr. Ahmed Ali Ahmed, said:

“Today we are signing agreements with UNDP to launch infrastructure projects with a total budget of close to US $2.5 million across Sulaimaniyah Governorate and Garmiyan and Raparin Administrations. This generous support from the Federal Republic of Germany, and collaboration with UNDP, comes as the KR-I continues to suffer from a severe economic crisis that began in 2013.

“Many challenges and increased pressure due to the large number of IDPs and refugees who are settling in the Kurdistan Region will be addressed through these fundamental basic-services projects, including improved electricity, water, roads, and sewerage systems.”

The Deputy Governor of Halabja, H.E Mr. Kawa  Ali Kareem, added:

“On behalf of the inhabitants of Halabja Governorate, including the IDPs, refugees and host communities, the office of Governor of Halabja expresses sincere gratitude and appreciation to the Federal Republic of Germany and UNDP’s Iraq Crisis Response and Resilience Programme (ICRRP) for supporting implementation of four important basic services projects that will improve internal roads and sewerage systems.

“Implementation of these infrastructure projects will benefit close to 107,000 community members and create over 255 temporary job opportunities in Halabja alone.”

The construction of effective wastewater and sewerage networks across Sulaimaniyah City, Qaladiza, Hajiawa and Khurmal Sub-Districts, and Hawari-New Neighbourhood in Kifri City, will reduce environmental pollution and the spread of diseases amongst vulnerable populations during periods of high rainfall. In Sulaimaniyah City, the construction of an electricity distribution network will provide regular electricity supply to hospitals, schools, and water supply stations – benefitting the whole community.

In 2018, with continuous funding from the Federal Republic of Germany, ICRRP and governorate authorities in the Kurdistan Region or Iraq have supported 28 projects benefiting over 1,240,121 host community members, IDPs and refugees and providing livelihood opportunities for 1,273 individuals.

UNDP’s Iraq Crisis Response and Resilience Programme (ICRRP) promotes the recovery and resilience of communities vulnerable to multi-dimensional shocks associated with large-scale returns and protracted displacement of Iraqis and Syrian refugees.  This is achieved through a medium-term, programming integrating crisis management capacity building, rehabilitating basic service infrastructure, livelihood recovery and social cohesion.

(Source: UNDP)

GCC “could Export Electricity to Iraq”

By John Lee.

The Gulf Cooperation Council (GCC) is reportedly in discussions with Iraq to connect electricity grids.

An official at the UAE’s Ministry of Energy and Industry told Reuters that the GCC could export its surplus electricity to Iraq.

(Source: Reuters)