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By John Lee.

Iraq's deputy prime minister for energy affairs, Hussein al-Shahristani, has opened a new gas-powered electricity plant in southern Baghdad.

The plant has four 125-megawatt generators and cost $219 million to build, he said.

Iraq Business News understands that the plant was constructed by the Korean company Hyundai.

(Source: Al-Shorfa)

If you're a regular reader of Iraq Business News, you'll know all about the huge opportunities in sectors such as oil and gas, mining, housing, and electricity.

You'll also be aware of the sorts of challenges facing the country.

But if you could change just three things about Iraq, what would they be? What three pieces of advice would you give to improve Iraq?

Please let us know in the Comments section below.

And remember, if you're looking for advice on doing business in Iraq, please feel free to contact Gavin Jones at Upper Quartile and Adrian Shaw at AAIB.

By John Lee.

As part of its effort to improve the national grid, Iraq has rehabilitated an old power plant in Nassiriyah.

Built in the 1970s, the plant is one of the largest in Iraq, but was in need of modernisation.

Electricity Ministry spokesperson Musaib al-Mudaris said it took Iraqi technicians three months to repair, and more aged power plants are in the process of being repaired.

According to the report from Azzaman, if the ministry’s previous promises are taken seriously, Iraqis should have continuous power supply in a few months and for the first time since 1991.

Iraq currently imports electricity mainly from neighboring Iran, which ships 1000 megawatts to the country.

(Source: Azzaman)

By John Lee.

A project to generate electricity from solar energy and wind in 15 remote Iraqi cities is now under way, according to a report from Al-Shorfa.

Ministry of Electricity spokesman Musaab al-Mudarres told the news agency:

"Iraqi companies have already started building integrated complexes for solar cells and towers to generate electricity from wind, to provide an equivalent of 5.5 megawatts of electricity a day.

"The areas that were chosen for the project don't have national electricity transmission networks because they are newly created and are located far from city centres.

"We hope that electricity generated from solar cells and wind will have a major impact on the standard of living and commerce in the chosen areas."

The project will take two years to complete and will cost 39 billion Iraqi dinars ($33.4 million), he said.

(Source: Al-Shorfa)

By John Lee.

The United Nations' Joint Analysis Policy Unit (JAPU) has issued a background paper on Iraq's budget for 2013.

The Government expenditure for 2013 totals IQD 138.4 Trillion ($ 118.3 Billion), with an increase of 18% over 2012 and exceeding 70% of GDP. The budget has three main headings: Energy, Security / Defense and Social Services, accounting for 21%, 14%, and 13% respectively of total budget.

Investment Expenditure represents 40% (IQD 55.1 Trillion) of government budgeted expenditure, the largest ever for Iraq. Investment in Oil and Electricity amounts to over 43% of the investment expenditure.

Government budgeted revenues amount to IQD 119.3 Trillion, with revenues from oil making 93%. The increase in oil revenues, made it possible for the government to cover its operating expenditure and allocate more to investment, yet heavy reliance on oil resulted in a budget fragile to oil shocks, and government going through complementary budgeting, and excessive delays in investment projects implementation.

The full report can be downloaded here.

(Source: UN)

By John Lee.

Electricity minister Kareem al-Jumaily has announced that Iraq will achieve electricity self-sufficiency by the end of this year, "except the problem of transporting the power from the stations to the cities".

In an interview with Arabia TV station, he said Iraqi power production will jump to 13,000 MW before the coming summer.

(Source: Aswat al-Iraq)

By John Lee.

South Korea's LS Industrial Systems has won a $67-million deal to build power distribution control centres for the Iraqi government.

Under the deal with the Ministry of Electricity, the company will build seven distribution control centers across the country by early 2015.

According to the report from Electric Light and Power, the centres will use a smart grid technology that enables more efficient power management.

"Following the successful completion of the projects, (the company) aims to invigorate the local market as well as strengthen overseas expansion," said a company official in charge of smart grid technology.

In November 2011, the company won a deal to install 85 electricity sub-stations.

(Source: Electric Light and Power)

The Kurdistan Regional Government has issued a strongly-worded statement challenging the policy of the Federal Government and the Ministry of Oil:

The Kurdistan Regional Government is proud of the achievements of its oil and gas industry since the fall of the former regime in 2003.

It expects the federal government of Iraq to be proud of them, too.

Since oil exports from the Region started in 2009, billions of dollars have flowed into Iraq’s treasury from fields in Kurdistan that have been explored, discovered and developed under the KRG’s modern, progressive and investor-friendly petroleum regime.

All this has been achieved by attracting world-class companies to the Region with minimal financial risk to the Iraqi state.

One would think that federal officials in Baghdad would embrace the progress made in the Kurdistan Region and value the contribution to the nation’s wealth.

One would think that federal officials would recognize the use of the Regions’ natural gas to provide electricity to its people and those of hard-pressed neighbouring provinces.

One would think that federal authorities would applaud the KRGs plans to create a northern energy corridor for Iraq, whereby up to 3 million barrels a day could soon be flowing through the north of Iraq to Turkey and international markets beyond, and the revenues are shared by all Iraqis.

It's always nice to start the year with some good news, and you'll find plenty of it in this week's newsletter.

For example, in recent days the French company Schneider Electric has won a $74-million order to build electricity sub-stations in the south of the country, the World Bank has announced that it will finance Lafarge (another French company) to the tune of $70 million to renovate its cement plant in Kerbala, and Elsewedy Electric has entered into a $169-million contract to build and operate a new 500-MW power plant in Diwaniya.

As always in Iraq, instability and other challenges continue to feature, and quite understandably these are the stories that make the headlines in the mainstream media, but here at Iraq Business News we remain committed to bringing you the full picture from a business perspective.

In Iraq already, or thinking about it? Iraq Business News marketing services take your message to the decision makers.

By John Lee.

Iraq's Minister for Electricity has signed a $74-million contract with France’s Schneider Electric to install 20 electricity substations in four southern provinces.

Ministry’s spokesperson Musaab al-Mudares said:

“There will be seven substations in Basra, six in Thi-Qar, four in Missan and three in Muthanna.

“The new stations will contribute in stabilizing the power capacity in the southern provinces and reduce loads in summer.”

(Source: Aswat al-Iraq)