Iraq has recently signed an agreement with Siemens Energy to add 14,000 megawatts (MW) of electricity generation capacity to its national grid, the Electricity Ministry has said.

The agreement, marking the third phase of Iraq's strategic energy partnership with the German company, includes the construction of gas-fired power plants across the country.

These facilities will primarily utilise locally sourced natural gas, including gas currently flared during oil production, to enhance sustainability and efficiency.

Electricity Minister Ziyad Ali Fadel said in local press comments at the weekend that the new Siemens Energy-built plants would employ combined-cycle gas turbine (CCGT) technology, allowing electricity generation without additional fuel consumption.

He also noted that the latest agreement would raise Iraq’s projected total generation capacity to 38,000 MW.

Iraq currently generates approximately 28,000 MW of electricity, while peak summer demand can exceed 55,000 MW, leading to frequent power outages and reliance on private diesel generators.

In addition to new power generation, the agreement includes long-term maintenance for existing facilities, such as the Dibis Gas and Al-Mussaib Thermal power stations.

Similar agreements have been signed with GE Vernova and France’s TotalEnergies to increase capacity and reduce emissions through flared gas recovery.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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