Economy Update – Baghdad
On Wednesday, the Ministry of Electricity outlined its strategic plan for the upcoming summer season. The ministry reaffirmed its commitment to finding innovative solutions to address gas shortages and diversify its supply sources, highlighting ongoing collaboration with the Ministry of Oil to facilitate the import of 600 million cubic feet of gas per day.
The summer strategy includes readiness initiatives for power stations, an expansion of transmission lines, and the establishment of new transformer stations aimed at enhancing system flexibility and improving equipment uptime. Additionally, the ministry plans to tackle distribution challenges by creating additional supply sources and developing supplementary stations.
A significant challenge for the ministry lies in securing imported fuel, as any reduction in gas supply has immediate repercussions for power generation capabilities. The ministry is actively working to mitigate this risk by diversifying its gas sources, having recently finalized a contract with Turkmenistan and now awaiting the completion of necessary financial and technical procedures. There is ongoing coordination with the Ministry of Oil to explore various solutions, including the planned importation of liquefied gas.
To further diversify its energy portfolio, a spokesperson for the Ministry of Electricity indicated plans to establish steam and combined cycle power stations, alongside solar energy installations and waste recycling projects aimed at energy production.
With respect to the public’s growing interest in solar energy systems, the spokesperson emphasized that this initiative serves as an effective strategy to alleviate pressure on the national electrical grid. The government aims to support citizens in acquiring these systems, offering financing solutions from the central bank.
Furthermore, government efforts include the conversion of 536 public buildings to solar power, a measure intended to reduce demand on the electrical network, particularly during peak summer consumption periods.
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