Posted on 15 November 2013.
By John Lee.
French company Schneider Electric has won a contract to build a power plant in Iraq.
The 64MW plant will be built in the Nasir district in northern Dhi Qar province, near the stadium in the area.
Schneider employs more than 140,000 people in over 100 countries. Last year revenues were $32bn.
(Picture: Schneider Head Office)
Posted in Construction & Engineering
Posted on 15 October 2013.
By John Lee.
BGR Energy Systems has signed a contract with the Ministry of Electricity for engineering, procurement and construction (EPC) of four 125-MW gas-fueled power project at Nasiriya.
The Economic Times reports that the contract is valued at $246 million and includes the scope of engineering, procurement and construction services of BOP, civil works and erection, testing and commissioning of gas turbine-generator sets supplied by General Electric, as well as, operation and maintenance of power project for six months.
BGR Energy Systems Limited is listed at the Bombay Stock Exchange and National Stock Exchange. The Company was originally incorporated in 1985, as a joint venture between GEA Energietechnik GmbH, Germany and B. G. Raghupathy.
(Source: Economic Times)
Posted in Construction & Engineering, Public Works
Posted on 01 October 2013.
The United States Department of Energy’s (DOE) Office of Electricity Delivery and Energy Reliability conducted a workshop in Baghdad, September 22-26, on electricity operations and maintenance for 20 engineers from the Ministry of Electricity who work at power plants across Iraq.
The five-day workshop provided the Iraqi participants with tools and methods to enhance efficiency and safety in the generation, transmission, and distribution of electricity.
This workshop was the final training session of the Department of State-funded Iraqi Energy Reliability, Survivability, and Resiliency Program. The program supports the U.S.-Iraq Strategic Framework Agreement (SFA), with the specific goal of facilitating the Government of Iraq’s capabilities to deliver essential services to its citizens.
In its entirety, the Iraqi Energy Reliability, Survivability, and Resiliency Program trained 90 Iraqi engineers, provided the Government of Iraq with the tools to identify vulnerabilities within the electricity sector, and proposed international industry best practices to address those vulnerabilities.
The U.S. Department of Energy provided trainers from its headquarters in Washington, D.C. and from the Pacific Northwest National Laboratories in Richland, Washington who are experts in turbine theory, electricity sector operations, and maintenance.
(Source: Embassy of the United States)
Posted in 'Your Country' - United States, Construction & Engineering, Education & Training, Public Works
Posted on 29 September 2013.
By Walid Khadduri for Al-Monitor, translated from Al-Hayat. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.
On Sept. 14, 2013, the Iraqi parliament’s Oil and Energy Committee published a report drafted by the advisory board of the Prime Minister’s Office, which indicated that Iraq is losing around $40 billion annually due to the lingering power outage crisis.
The report confirmed that the continuous power outages caused serious damage to petrochemical plants and private plants. It is worth mentioning that for years now power outages in Iraq have shot up from 15 to 20 hours per day throughout the year, with the exception of the Kurdistan Region of Iraq, where the private sector participates in electricity generation and distribution.
It is true that power outages have become a part of daily life for Iraqi citizens, but their far-reaching implications go beyond significant material losses. The continuous blackout has led to the use of generators at homes and in neighborhoods, causing severe environmental pollution. Moreover, constant and sudden outages damage household electrical appliances such as refrigerators, computers and televisions.
These losses may have been borne by the citizen and not the state as a whole, yet they are significant cumulatively losses for the country, both at the moral and material levels. Besides pollution, Iraqis pay hundreds of dollars for generators and fuel, in addition to the state electricity bills.
Why this dire situation in the electricity sector in Iraq and other Arab countries? Why is this happening at this particular stage and not in the first stages of use of electricity in the Middle East, that is, decades ago, after World War II? Does Iraq — and other countries witnessing the same tragic experience — lack the necessary funds for the construction of power plants? Of course not. The main reason lies in the dissemination of a culture of corruption and lack of accountability, which spread to senior officials in the Iraqi state.
Posted in Oil & Gas, Public Works
Posted on 15 August 2013.
Iraq’s Ministry of Electricity has just promised that shortages will be eliminated by the end of the year. Readers of Iraq Business News will remember a previous commitment, made in strident terms just four months ago, to end blackouts by the end of October.
Ministry spokesperson Musaib Mudaris claims the country now produces around 11,000 megawatts, still short of the country’s total needs, estimated at 13,000 megawatts. From a first glance at these figures, one might expect that most residents and businesses have power most of the time, but the reality on the ground is different.
Al-Monitor‘s Ali Abdel Sadah, for example, reports that Baghdad residents on average enjoy six hours of electricity a day, while some areas of the city remain completely without electricity. So in addition to some scepticism about the numbers, there appears to be a major problem of distribution.
The good news is that funds are being directed to solving these problems, with the Ministry’s budget for this year being increased to $14 billion. And while many contracts have already been issued, this should still create more opportunities for engineering businesses.
Meanwhile, we will continue to watch the real availability of electricity throughout the country, and remind the Ministry of its commitments.
If you are in Iraq, please tell us your experience of electricity supply in the comment section below.
Posted in Blog, Construction & Engineering
Posted on 15 August 2013.
By John Lee.
The Ministry of Electricity’s 2013 budget has soared to $14 billion to help it end power outages in the country, reports Azzaman.
But the ministry’s spokesperson Musaib Mudaris said the blackouts will continue until the end of the year, by which time output will reach 13,000 megawatts, enough to meet the country’s domestic needs.
Mudaris said half of this year’s allocations were invested in power plants and enhancement of the national grid.
The ministry’s operating costs amount to $7 billion a year, he added.
Mudaris also revealed that Electricity Ministry’s budget in the years from 2003-2012 had amounted to $37 billion.
Currently, he said, Iraq’s combined power output was in the range of 11,000 megawatts, still short of the country’s total needs, estimated at 13,000 megawatts.
However, many in Iraq doubt whether the ministry will be able to put an end to outages any time soon, given the precarious security situation and the dramatic increases in demand due to improved living standards.
However, Mudaris insisted that the country to be able to produce up to 20,000 megawatts by the end of 2014.
Posted in Construction & Engineering, Oil & Gas, Public Works
Posted on 15 August 2013.
By John Lee.
Iraqi power stations are using nearly 60 million liters of fuel per day, according to a report from Azzaman.
The Oil Ministry issued the statistics in response to complaints by the Ministry of Electricity, which has repeatedly blamed lack of fuel for power shortages.
Last month Iraq signed a multi-billion deal with Iran for the import of Iranian natural gas to feed two power plants in Baghdad and one in Diyala.
Besides major plants linked to the national grid, there are thousands of small generators across the country, which are put to work to once the national grid is off.
Private generators consume more than 8 million liters of gas oil per day, the Ministry added.
The fuel supplied to owners of private generators is subsidized since most households in Iraq either own one or are linked to medium size generators serving several households.
(Picture: Taji Power Station)
Posted in Oil & Gas
Posted on 14 August 2013.
By Harith Hasan for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.
Last month, demonstrators in the southern Iraqi cities of Nassiriya and Basra organized nightly rallies to protest the government’s failure to provide enough electricity for households during the notoriously hot summer.
With temperatures exceeding 113 degrees Fahrenheit during July and August, most households get less than 12 hours a day of electric power. The Iraqi government spent $28 billion to reform electricity services, which became one of the most critical problems in the country since the second Gulf War in 1991.
The failure to handle this problem is another cause for the increasing disillusionment with the government. Responding to the popular rage, Prime Minister Nouri al-Maliki said in a TV interview that he was manipulated by the minister of electricity and his staff, who provided him with incorrect information about their system’s capacity. Although the minister of electricity position has been rotated among five people since 2006, none of them managed to make tangible improvements.
But this did not prevent political parties from competing to obtain this position, a contest driven less by a “commitment” to social welfare and more by the fact the ministry is contract-rich. During a TV interview, Khalaf al-Ileyan, whose party was “awarded” this ministry according to a 2006 power-sharing agreement, said that he was offered a $2 million “down payment” and a monthly $1 million if he accepted a nomination for this position.
This confession might be shocking, but in fact it reflects habitual relations within Iraqi elite. “Buying” a ministry is nothing new in Iraq. The ritual of power-sharing has become all about finding ways to distribute the growing oil revenues among political parties and transforming state institutions into fiefdoms of competing groups.
Initially, the power-sharing formula was presented as a method to create an inclusive system of government that departs from the legacy of exclusionary politics. In practice, power-sharing has become a power apportionment, what Iraqis call: Muhasesa. This is partly because it emphasized ethnic and sectarian categories in determining political weights, which turned institutions into instruments of political conflicts rather than being frameworks to solve them.
Posted in Industry & Trade, Politics