Siemens Wins $14bn Iraqi Projects

German engineering firm Siemens signed a $14bn roadmap agreement to develop Iraqi power projects, including gas-fired plants, April 30.

Three contracts valued at around €700mn ($787mn) were awarded for Phase 1, which includes a 500-MW gas-fired power plant in Zubaidiya; the upgrade of 40 gas turbines with upstream cooling systems; and installing 13 132-kV substations and 34 transformers across Iraq.

Its American arch-rival GE, which has also been negotiating with Iraq, said April 30 that it expects to deliver a number of other key Iraqi power projects, including 750 MW of additional power by the end of the year.

Last year, Siemens and GE signed preliminary agreements to add 11 GW and 14 GW respectively to Iraq’s power infrastructure.

Some of that growth will come from enhancing the efficiency of current power plants and cutting grid losses, which accounts for about two-fifth of total generation. The losses in the Iraqi system are around 40 TWh/yr. Iraq has also focused on expanding gas-fired plants, fed by captured flaring gas, which stood at 16bn m³ last year, based on the International Energy Agency’s estimate.

Saudi Arabia has offered to build 3 GW of renewable power plants in the north of Iraq and to export electricity at $21/MWh – a quarter of the price in Iran’s current contract with Iraq.

IEA says reducing network losses and moving towards an electricity mix where renewables play a more prominent role would free up 9bn m³/yr of gas for other uses in 2030, plus 450 kb/d of oil for export.