Iraq signs deals to generate 48GW of electricity

Iraq has suffered from power shortages and has plans to take electricity from its Gulf neighbours

John R Kreul, Independent Picture Service/Alamy via Reuters Connect

Iraq has signed agreements with international companies to develop power plants with a total capacity of 48 gigawatts, electricity minister Ziad Fadhil said.

The government has placed the energy sector at the forefront of its priorities over the past three years, the state-owned Iraq News Agency reported, citing the minister.

The ministry has implemented a plan to rehabilitate the country’s power plants and launch new projects with a capacity of 15 GW said

The new projects will solely rely on locally available fuel, Fadhil said.

No financial and project details, or names of global companies involved, were disclosed.

Meanwhile, work has been completed on the stalled combined-cycle power plant projects, which will increase production efficiency.

The ministry is expanding transmission networks, implementing electrical interconnections with neighbouring countries, and constructing solar power plants in several governorates.

Last week, the ministry said it would soon receive 500MW of electricity from neighbouring Gulf countries as part of a long-term supply contract to tackle its chronic power shortages.

Opec’s second-largest oil producer suffered a 22 GW power gap at the end of 2025, due to the decline in gas and electricity supplies over the past two years, according to data released by the Eco Iraq Observatory.

In late 2025, Iraq’s caretaker prime minister Mohammed Al-Sudani unveiled a 20-year plan to boost power generation to 57 GW with the help of international companies.

By Pramod Kumar

January 12, 2026, 4:54 PM