Iraqi Ministry of Electricity Official Highlights Unique Power Pricing Structure
An official from the Iraqi Ministry of Electricity has stated that the monthly cost for 1,500 kilowatts of power is 10 dinars, positioning Iraq as the country with the lowest electricity rates globally. No other nation offers such low electricity prices to its citizens.
The Iraqi Ministry’s conference in Baghdad has become a platform for discussions on environmental issues, ministry resources, and Iraq’s economic landscape.
“Completion of Interconnection Line Project by Year-End”
On Wednesday, January 29, 2025, during the second panel of the second day of the conference, Abdulhamza Aboud, an official from the Ministry of Electricity, indicated that “the electricity provision in Iraq remains under substantial pressure, both in terms of security and political stability. We aim to diversify our electricity and gas sourcing from multiple countries, ensuring that we are not dependent solely on one nation for power supply, as this poses risks of disruptions due to security or political tensions.”
Aboud elaborated on existing partnerships with neighboring countries like Turkey and Iran, mentioning that current agreements include an interconnection with Turkey providing 400 megawatts and another with Jordan supplying 150 megawatts. He further stated, “By the end of this year, the interconnection line aims to facilitate an additional 500 to 1,000 megawatts.”
Regarding the importance of diversifying energy sources, Aboud noted, “The attractiveness of interconnection lines lies in the pricing which correlates with a basket of Arab prices, providing Iraq with a comprehensive view of varying rates over a six-month period. The line with Saudi Arabia is expected to be operational by mid-next year.”
Innovations in Global Production Technology
Rashid Janabi, CEO of GE Iraq, shared insights during the panel, highlighting that “the previous year has shown significant advancements, with nearly 8 gigawatts of the Ministry of Electricity’s production systems being upgraded. Additionally, 46 production units have been modernized across 12 newly built plants, resulting in an incremental increase of 50 megawatts.”
According to Janabi, “The upgrades have widely improved the efficacy of the systems. For instance, at the Basmaya plant, units upgraded with AGP technology have seen a 6% boost in capacity. These global standards have successfully reduced carbon emissions by nearly a million tons, thus reinforcing our commitment to enhancing the broader ecological context of Iraq. By 2024, six new facilities are expected to commence operations, with several more set for the first half of 2025.”
Janabi continued, emphasizing, “Investing in turbine-based power generation units is instrumental in minimizing gas flaring by 53%. Our company has also increased production capacity by 16,000 megawatts and added 30 additional facilities for the transmission system.”
“Iraq’s Electricity Pricing Structure is Most Competitive”
Officials at the Ministry of Electricity reaffirmed, “The pricing for 1,500 kilowatts remains at 10 dinars, and we challenge any other country to match this rate. For demand reaching 3,000 kilowatts, the cost approximates 35 dinars, for 4,000 kilowatts the rate rises to about 80 dinars, and for consumption above 4,000 kilowatts, the cost is capped at 120 dinars. Notably, our tariff for 120 dinars applies uniformly regardless of demand for those using up to 4,000 kilowatts.”
Abdulhamza Aboud also addressed the challenge of technical and non-technical losses, pointing out that “the greatest issues arise from non-technical losses, often termed as electricity theft, which affects the overall supply chain integrity, causing significant setbacks for consumers and distributors alike. A significant portion of our electricity is consumed without adequate oversight from the Ministry and other stakeholders.”
The Ministry acknowledges the need to strengthen regulatory frameworks to curb power theft and enhance efficiency, stressing that it is essential to reform the electricity provision sector to minimize overloads and ensure greater transparency in supply and demand management.
