New Electricity Projects Throughout Iraq

The Iraqi Industry Ministry has ordered its factories to work on generating electricity required for production, to minimize the load on the national electricity network. The ministry noted that power shortage is causing losses to its factories.

“The ministry has issued contracts to purchase large generators for this purpose,” the ministry said in a press release on Tuesday, as received by Aswat al-Iraq news agency.

Meanwhile, the Basra Provincial Council has approved an investment project with an international firm that will supply the al-Faw district with electricity. That project should be completed within 30 days.

In Kirkuk, Siemens is providing a 260MW generator to the electro-gas station in Taza area, according to AK News. The project is expected to take 18 months.

The Tuz Khurmatu electro-gas station in Kirkuk will also be upgraded by Siemens, with two new units producing 256MW and 65MW.

(Sources: Aswat al-Iraq, AK News)

AAIB View:

A spokesperson from A.A.I.B. Insurance Brokers commented: The fact that the Iraqi Industry Minister has needed to issue this sort of statement shows that industrial output is being impacted and further stresses the need to improve matters as the lack of sufficient output from the National Grid acts as a brake on industrial production.

Various estimates have appeared in the media as to how demand for electricity in Iraq may grow, ranging from five to fifteen percent per annum. As the economy recovers, industry expands and domestic consumption increases, more demands will be made on the electricity sector.

Work to reform, repair and improve the electricity sector has been underway for some years; however the Governments aggressive plan to invest heavily in new power generation and distribution capacity over the next five years is a clear sign of the importance placed on this subject, nationally and at a governorate level. We have seen a number of announcements from Government officials relating to contracts and projects for the construction of new power infrastructure, or to the refurbishment of existing power plants and bearing in mind the lead times for bringing extra capacity into production, many are hoping for early implementation of these projects.

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