GE, Iraq Ink Power Capacity Deals
US energy engineering giant GE has signed agreements worth over $1.2bn with Iraq's electricity ministry to underpin peak electricity supply across the country, it said August 19. It signed contracts valued at $500mn to upgrade and maintain key power plants in the country, which are mission-critical to sustain the power supply of over 6 GW and scale up operational efficiency.
Another contract is valued at $727mn, for which GE will reinforce Iraq’s transmission network and interconnection with the electricity grid of Jordan.
In addition to delivering the scope of services, GE will also work with multiple export credit agencies to facilitate the discussion of financing over $1bn for the projects.
Iraq’s electricity ministry said uninterrupted electricity, especially during summer months, for industry and households was its priority. "Bringing world-class technology, especially to upgrade our power plants, and to ensure their seamless operation is a critical part of this strategy," he said, and GE was "an ideal fit for our requirements."
GE said rising demand for power meant that identifying gaps in supply and filling them was its focal area. The necessary grid infrastructure and a sustainable approach to progress were also needed in order to allow Iraq to develop better. "This partnership will be able to bring power to millions of people and enable economic development in the country,” it said.
The International Energy Agency in May said that one solution to Iraq's energy needs would be to flare much less gas and use it for power generation, but short-termism meant that all resources available were directed at oil production without capturing the associated gas. But Iraq imports gas from Iran for power generation.
GE will deploy its latest technology at the sites to be identified by the ministry such as parts, repairs and services for power plants in Basra, Mosul, Baghdad and Karbala among others, which will maintain the supply of over 6 GW of power. This builds on 1.575 GW of new capacity that GE added since December 2019, and the sustained delivery of 4.325 GW to meet peak summer demand.
GE will execute the design, supply, installation testing and commissioning of high voltage substations and specific overhead transmission lines to Jordan that will reinforce the smooth operations and delivery of uninterrupted power of the national grid across Iraq, including the liberated areas, which were adversely impacted during the strife supporting their reconstruction.
Present in Iraq for over 50 years, GE says it has helped secure over $2.4bn in financing for energy sector projects in collaboration with export credit agencies, commercial banks and other organizations. Nearly 95% of its team in Iraq are nationals, "deployed in the toughest locations, bringing power where it is needed most."