Iraq signs energy deal with Siemens to boost electricity grid

BAGHDAD,— Iraq has signed a new agreement with Siemens Energy to upgrade its power infrastructure, government officials said Thursday.

The deal includes the construction of power plants capable of generating 14,000 megawatts and two separate maintenance contracts aimed at enhancing existing facilities, according to statements from Iraq’s Ministry of Electricity and the Prime Minister’s Office.

The first service contract covers long-term maintenance of the Dibis Gas Power Plant, located in Kirkuk province in northern Iraq, and includes two generation units with a combined capacity of 340 megawatts.

The second contract applies to the Al-Mussaib Thermal Power Plant, which will receive five years of scheduled maintenance, a 150-megawatt capacity increase, and operational upgrades to improve safety and reliability.

Prime Minister Mohammed Shia al-Sudani highlighted Siemens Energy’s ongoing role in Iraq’s power sector, calling the German firm a strategic partner in rebuilding the national grid.

Iraq continues to face electricity shortages after decades of war and neglect, despite its vast oil resources. Power cuts remain common, especially during peak summer months.

In March 2024, Iraq signed a agreement with Siemens Energy to convert natural gas flared during oil production into fuel for power generation.

The project is part of Iraq’s broader strategy to reduce gas flaring and use the captured gas to support its electricity needs. The agreement targets the processing of approximately 120 million standard cubic feet of gas over the first six months, with an additional 120 million cubic feet expected to be captured within a year.

(With files from Agencies)