Electricity Sector Developments – Baghdad
The Ministry of Electricity is gearing up for the upcoming summer season through two primary phases designed to ensure stability in the electrical grid and mitigate the effects of external factors on production. Government spokesperson Al-Awadi has announced that the government is prepared with various scenarios concerning the import of Iranian gas. Additionally, the spokesperson for the Ministry of Electricity has suggested referring financial models for steam station projects aimed at generating 15 GW of electricity to implementation in collaboration with the Advisors Authority, paving the way for project execution following the selection of qualified companies.
Al-Awadi stated during a recent program that by 2028, Iraq is expected to attain energy self-sufficiency, eliminating the need for gas imports from abroad. He emphasized that Iraq will not accept coercive relations with any country, large or small, while engaging in discussions with various countries, such as China, Russia, the UK, and the United States.
The government has indicated that Iraq has not yet officially notified the end of exemptions for Iranian gas imports. However, the Prime Minister has directed preparations for the possibility of not renewing these exemptions.
Al-Awadi elaborated that Iraq imports 50 million cubic feet of gas from Iran, which constitutes one-third of Iran’s total energy production. He mentioned that the government is equipped with various scenarios, whether exemptions are renewed or not. Furthermore, the Prime Minister has communicated with his counterpart from Turkmenistan, noting that delays in receiving Turkmen gas are attributable to the intermediary company. He anticipates a resolution in the next two months to import an additional 20 reserves via the Iranian pipeline. An alternative strategy involves employing gas platforms, which are floating units connected to a specialized pipeline linked to electrical stations in Basra.
On a related note, the U.S. State Department recently expressed its approval of Prime Minister Mohammed Shia Al-Sudani’s commitment to achieving energy independence.
In the meantime, the Parliamentary Energy Committee has clarified that the Ministry of Electricity is actively securing the necessary fuel for power generation stations. An agreement with the Ministry of Oil has been reached to establish strategic storage for gas oil, ensuring that this reserve will be filled in the near future.
Committee member Radi mentioned that there are ongoing discussions between the Iraqi government and U.S. representatives to maintain exemptions for Iranian gas throughout this summer. He noted that the government and the economic ministerial council, along with the Ministry of Electricity, are engaged in these negotiations. Emergency plans are also in place to supply major commercial centers with kerosene during designated periods to uphold current energy output levels.
Regarding renewable energy initiatives, Radi revealed that some solar energy projects have been referred for implementation, while others await further clarity on their progress. The Ministry of Electricity has initiated awareness programs to encourage the use of solar energy, with some residents in the western and northern regions starting to depend entirely on this alternative energy source.
Ministry spokesperson Ahmed Moussa stated that a comprehensive study has been conducted on steam station projects, presenting private financial models and implementation mechanisms post-contract signing with specialized international firms in the electric energy sector. It is anticipated that these projects will adhere to the financial models specified by the ministry, which include government-implemented energy projects or those executed through loans from international banks or investment initiatives. The steam stations are projected to produce high-energy outputs distributed across various provinces in the north, center, and south of the country.
Moussa also highlighted that projects will be accessible to reputable international companies, provided they meet high technical specifications and adhere to the established financial model, including commitment to timely completion as mandated by the ministry.
It is worth noting that the Ministry of Electricity announced last month plans for steam stations capable of producing approximately 15,000 megawatts by utilizing locally available and cost-effective fuel sources to enhance the national power grid.
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