CAIRO - Iraq has signed an initial agreement with POWERCHINA to build solar power plants with a capacity of 2,000 megawatts, the government said on Wednesday.

The first stage of the project will have a capacity of 750 megawatts, the Iraqi cabinet added in a tweet.

Power from Iraq's main grid suffers year-round from hours-long cuts each day, but shortages worsen during the hot summer months when temperatures regularly reach 50 degrees and households rely on air conditioning.

(Reporting by Ahmad Elhamy; editing by David Evans) ((ahmad.elhamy@thomsonreuters.com; +201023399104; Reuters Messaging: ahmad.elhamy.thomsonreuters.com@reuters.net))