Electricity sector in Iraq

Last updated
Electricity sector of Iraq
Data
Installed capacity (2016)13 GW
Share of fossil energy 81%
Share of renewable energy 19%
Average electricity use (2003)700 kWh per capita
Consumption by sector
(% of total)
Residential48 (2002)
Industrial29 (2002)
Iraq electricity supply by source Iraq electricity production.svg
Iraq electricity supply by source

Iraq's electricity generation primarily depends on fossil fuels. In 2021, natural gas was the largest source at 57.3% of the total, followed by oil at 36.7%. Renewable energy, mainly from hydroelectric power, contributed 5.9%. [1] As of 2023, the 30 gigawatts (GW) of installed capacity cannot meet summer peak demand. [2]

Contents

In 2021, the majority of Iraq's electricity consumption was attributed to the residential sector, which used 65.0% of the total. This was followed by the commercial and public services sector at 21.6%, and industrial activities at 11.2%. The smallest share was consumed by the agriculture and forestry sector, accounting for only 2.2%. [1]

According to the United States Department of Energy officials, demand for electricity has been stimulated by a growing economy and a surge in consumer purchases of appliances and electronics.[ obsolete source ] [3] In addition, electricity is subsidized in Iraq, which leads to increased demand. [2]

Due to a weak grid and institutional problems many consumers use small generators or rooftop solar panels. [2]

History

Electricity entered Iraq for the first time in 1917 where the first electric machine was installed in "Khan Dala" building. [4]

Prior to the Gulf War, the total installed generating capacity was 5,100 MW, which fell to about 2,300 MW after the Gulf War. Approximately 87% of the population had access to electricity. [5] A combination of wars, sanctions, looting and vandalism has however, severely affected the entire power system infrastructure in Iraq.

During the 1991 Gulf War, the electricity system suffered severe damage. Several transmission lines were put out of service, electrical substations were damaged. While some of the damage of the 1991 war was repaired and about 4,500 MW of generating capacity was available in 1999 when Iraq reorganized its electricity sector. The sector was separated from the Ministry of Industry, and the Commission of Electricity (CoE) was established on June 21, 1999. About 4,500 MW of generating capacity became available by the end of 2002, power supply remained insufficient and unreliable. Programmed load shedding and unplanned power outages were frequent. [6]

Post 2003 war

Although the power system was not significantly affected by the last conflict, capacity was reduced to approximately 3,300 MW by a combination of further breakdowns, lack of spares and interruption of major maintenance cycles. The balance between generation versus demand as reported on 18 July 2004 by the Coalition Project Contracting Office (PCO) (Agency responsible for Coalition projects following the Coalition Provisional Authority (CPA), which completed its mandate as of 30 June 2004) is as follows:

Lack of electricity tends to affect more severely the most vulnerable groups of Iraq's society and increases their morbidity and mortality. Ongoing efforts need to be maintained and new actions to increase electricity supply need to be initiated. In addition, significant delays have been occurring in the reconstruction work that is underway and more security related bottlenecks are expected. Baghdad, a city of 6 million (representing 1/3 of Iraq's population) is still subjected to programmed load shedding on a rolling basis (roughly 3 hrs on 3 hrs off). This is often exacerbated by unforeseen events. For example, on 2 June and 26 July 2004, segments of Baghdad were left without power for 16 and 21 hours, respectively. These events took place in weather that is exceedingly hot. In a country with 39.7% of its population under 15 years, these events do not go unnoticed and the need to add generating capacity to the grid is most pressing. [6]

Prewar Baghdad had electricity 16 to 24 hours per day and was favored for distribution. The remainder of Iraq received 4–8 hours of electricity per day. [7] Post war, Baghdad no longer has priority and therefore both Baghdad and the country as a whole received on average 15.5 hours of electricity per day as of February 2010. [8]

Statistics

YearAnnual consumption per personInstalled capacity (MW)DemandPeak demand
195550
19901,700 kWh5100
2003900 kWh3300
2003 June700 kWh447064007500
200642808180
2008600010000
20108000 [9] 14000 [9]
201613000 [10] 21000 [10]

Generation

The 1990 installed capacity of 9,295 MW consisted of 120 power-generating units in various thermal, gas turbine and hydroelectric power stations. Approximately 70% of Iraq's installed power generating capacity was damaged or destroyed during the 1991 Gulf War. All major power stations were damaged and nearly 80% of the gas turbines units were affected. After 1991, only about 50 units were available, with a generation capacity of 2,325 MW. The construction work on three new large thermal power stations at Yousifiya, Al-Shemal and Al-Anbar were stopped, because of the ensuing sanctions. [11]

Station typeNo.Name Plate Rating (MW)Actual Rating (MW)
Thermal85,4151,600
Gas Turbines142,181650
Hydro72,518650
Diesel Plant38787
Total3210,2063,137

Thermal power stations

The majority of the power plants in Iraq were built between the mid-1970s and 1980s, with a few small gas-fired plants commissioned in 2003. The majority of the existing power plants are thermal plants that use crude oil supported by gas-fired and hydro plants. [12]

Gas power stations

Hydro-power stations

Imports

More import from the electricity sector in Turkey is planned for the 2020s. [16]

Local diesel generators

These are either small generators for a capacity of a house or large enough to supply a block of houses within the neighborhood supplying power for monthly fees, 14.2 US cent/kWh. [17]

Iraq rebuilding projects

As of June 2014, Iraq spent about US$27 billion between 2003 and 2012 to rehabilitate the power sector after decades of war and sanctions, but widespread corruption in the country has hindered development efforts and power outages continue. [18] In 2005, the World Bank estimated that US$12 billion would be needed for near-term restoration, and the Ministry of Electricity estimated that US$35 billion would be necessary to rebuild the system fully. [19]

Economics of the Electricity Sector in Iraq

The IMF estimate that in 2020 less than half of supplied electricity was billed and less than a quarter paid for. [32]

The economics of Iraq's electricity sector is characterized by significant challenges related to supply, demand, infrastructure, and financial sustainability. These issues are compounded by the country’s historical context of conflict, sanctions, and ongoing instability.

Revenue Collection and Subsidies

A significant economic challenge in Iraq’s electricity sector is revenue collection. According to the International Monetary Fund (IMF), in 2020, less than half of the electricity supplied was billed, and less than a quarter of the billed amount was actually paid for. This low rate of revenue collection is partly due to widespread subsidies that keep electricity prices artificially low. These subsidies lead to increased consumption and reduced incentives for efficient usage.

Investment Needs and Funding

The Iraqi Ministry of Electricity has estimated that around US$35 billion would be necessary to fully rebuild the electricity system. The World Bank has similarly noted that near-term restoration efforts alone would require US$12 billion. Despite significant investments since 2003, including about US$27 billion by 2012, the sector remains underdeveloped due to factors such as corruption, mismanagement, and security issues.

International Aid and Contracts

Several international contracts have been signed to enhance Iraq’s electricity infrastructure:

Local and Regional Dynamics

Efforts to Improve Efficiency

To address inefficiencies, the government has been working on various reforms and reconstruction projects. However, these efforts are often hampered by logistical challenges, security concerns, and the need for substantial financial resources.

See also

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References

  1. 1 2 "Iraq - Countries & Regions". IEA. Retrieved 2024-04-16.
  2. 1 2 3 "Iraq needs renewables, but they won't solve its power problems without broader reforms". Middle East Institute. Retrieved 2023-05-05.
  3. ↑ Rebuilding Iraq (PDF) (Report). United States Government Accountability Office. May 2007. p. 34.
  4. ↑ "History of Electricity". Iraqi Ministry of Electricity. p. 14. Archived from the original on April 2, 2009.
  5. ↑ Rebuilding Iraq & May 2007, p. 15.
  6. 1 2 Rehabilitation of Unit 1 of Al Musayab TPS- Stage 1 (PDF) (Report). United Nations Development Group Iraq Trust Fund. pp. 6, 7. Archived from the original (PDF) on July 28, 2011. Retrieved December 31, 2008.
  7. ↑ Carey, Glen C. (July 28, 2003). "Anger simmers in Baghdad over lack of electricity, crime". USA Today .
  8. ↑ O'Hanlon, Michael E.; Livingston, Ian (January 31, 2011). Iraq Index (PDF) (Report). Brookings Institution.
  9. 1 2 Yee, April (December 20, 2010). "Iraq to build four power plants". The National (Abu Dhabi) .
  10. 1 2 "Iraq agrees $328 million GE deal to boost electricity grid". Reuters. Jan 25, 2016.
  11. ↑ Gautier, Michel (October 2003). Joint Iraq Needs assessment: Electricity (PDF) (Report). United Nations / World Bank.
  12. ↑ Farage, Taymor (June 1, 2008). "Progress Amid Chaos". Transmission & Distribution World.
  13. ↑ "Power station opens in Baghdad". Iraq Directory. January 3, 2009. Archived from the original on January 11, 2009.
  14. ↑ "US sanctions hit Iraq power imports from Iran". Trade Arabia . January 5, 2011.
  15. ↑ Al Khalisi, Isam (August 14, 2006). "The Real Cost To Iraq Of Imported Electricity". Middle East Economic Survey . XLIX (33). Archived from the original on November 24, 2007.
  16. ↑ "Iraq to import electricity from Turkey to tackle deficit". Middle East Monitor. 2020-08-07.
  17. ↑ smrjaff (January 9, 2009). "Diesel generator power cost in Iraq". Iraq-Engineers. Retrieved January 10, 2009.
  18. ↑ Ibrahim, Haider (February 27, 2014). "Iraq to allocate USD4.7bn for electricity sector in 2014". Zawya.
  19. ↑ "COUNTRY PROFILE: IRAQ" (PDF). Library of Congress. August 2006. p. 11. Archived from the original (PDF) on December 4, 2010. Retrieved February 4, 2011.
  20. ↑ Rulison, Larry (December 16, 2008). "GE Energy signs $3 billion contract with Iraq". Times Union (Albany) .
  21. ↑ Project #: E4-15: Emergency Rehabilitation of Mussayib Power Station – Stage II (PDF) (Report). United Nations Development Group Iraq Trust Fund. September 2008.
  22. ↑ "World Bank to loan Iraq power plant $124 million". Iraq Directory. March 30, 2007.
  23. ↑ Wilson, Lloyd; Rawal, Yogin (July 18, 2007). Dora Power Station Unit 5 and 6: Sustainment Assessment (PDF) (Report). Office of the Special Inspector General for Iraq Reconstruction (SIGIR). Archived from the original (PDF) on October 13, 2013. Retrieved January 28, 2011.
  24. ↑ Dokan and Derbandikhan Emergency Hydro Power Project (PDF) (Report). Ministry of Industry and Electricity of Kurdistan Regional Government, Iraq. March 27, 2006. p. 8. Archived from the original (PDF) on October 5, 2017. Retrieved January 10, 2009.
  25. ↑ "Turkish company to build power plant in C. Iraq". Kuwait News Agency. January 13, 2011.
  26. 1 2 3 "Iraq awards power turbine work to 3 Turkish firms". Reuters. October 10, 2010.
  27. ↑ "Iraq MOE - Al Khairat Power Plan". Projects Monitor. Zawya. January 29, 2011. Archived from the original on October 17, 2012.
  28. ↑ "Iran to raise electricity exports to Iraq: Minister". Payvand. Mehr News Agency. July 26, 2011.
  29. ↑ "Iran to Increase Electricity Exports to Iraq". Iraq-Business News. AKNews. July 27, 2011.
  30. ↑ http://www.sunir-co.com/index.php?option=com_content&view=article&id=204&Itemid=23%5B%5D
  31. ↑ "Login".
  32. ↑ "The Fiscal Cost of Iraq's Electricity Sector and Potential Gains from Reform". IMF Staff Country Reports. 2023 (076). 2023-02-03. doi:10.5089/9798400231759.002.A002.
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