Al Sudani’s ambitious energy plans could signal a new era for Iraq

In a major push to secure Iraq ’s energy independence and strengthen its ties with the international community, Iraqi Prime Minister Mohammed Shia Al Sudani has announced new plans to add 10 gigawatts of electricity to the power grid. This ambitious initiative aims not only to address Iraq’s ongoing power shortages but also to position it as a critical player in the global energy market. By aligning Iraq’s energy strategy with global interests, the Al Sudani government seeks to foster deeper regional co-operation and attract international investment. “Our focus is not just on ensuring reliable electricity for the people of Iraq,” Mr Al Sudani emphasised. “It’s also about contributing to global energy stability and fostering partnerships that will benefit both Iraq and the international community.” These remarks underscore Iraq’s intention to leverage its domestic energy development to forge stronger connections with the international community. A cornerstone of Iraq’s new energy strategy is collaboration with global energy companies such as GE Vernova and Siemens, among others. For example, the partnership with GE Vernova is vital in modernising Iraq’s aging power infrastructure. The company plans to inject up to 3 gigawatts of electricity into Iraq’s grid through advanced combined cycle power plants, significantly enhancing the country’s energy capacity. Additionally, the plan includes upgrading over 70 turbines and generators at 18 power plants across Iraq, ensuring that the country can meet growing electricity demand more efficiently. These upgrades will bolster Iraq’s energy infrastructure, making it more resilient and capable of providing reliable electricity to both urban and rural areas. Iraq’s energy strategy also reflects a shift towards sustainability, aligning with global efforts to reduce carbon emissions. Historically, Iraq has been a major contributor to gas flaring, a process where natural gas produced during oil extraction is burnt, leading to significant environmental harm. The new energy initiatives aim to capture this flared gas and convert it into electricity, reducing pollution while increasing power generation. In addition, the Prime Minister laid the foundation for a 300 MW solar project in Karbala, which is the first of several contracts as part of a larger 2,250 MW solar project. This move towards more sustainable energy practices is crucial for Iraq’s future. It not only addresses environmental concerns but also aligns Iraq with global energy trends that prioritise sustainability and the efficient use of natural resources. These efforts signal Iraq’s commitment to becoming a more responsible energy producer on the international stage. Beyond domestic energy improvements, Iraq is also focusing on regional energy co-operation. The country is actively engaging with neighbouring Gulf states, including Saudi Arabia and the rest of the Gulf Co-operation Council, to diversify its energy sources. A key project in this strategy is the planned electricity interconnection with Saudi Arabia, which will deliver one gigawatt of electricity to Iraq. For the first time, Al Rutba in Iraq's Al Anbar governorate is receiving electricity from Jordan , and Iraq’s grid is now connected to Turkey’s grid, allowing it to link with Europe. These regional partnerships are part of Iraq’s broader strategy to promote economic integration and stability in the Middle East. By enhancing co-operation with its neighbours, Iraq is positioning itself as a central player in the region’s energy dynamics. Mr Al Sudani’s government views these initiatives as essential for transforming Iraq from a country dependent on external energy sources into a hub of energy production and regional co-operation. In addition to electricity generation, Iraq is making significant strides in managing its vast oil and gas resources. The recent signing of contracts for the fifth and sixth oil and gas licensing rounds is a crucial step in this direction. These contracts, which open up new oil and gas fields for international investment, are expected to attract billions of dollars in foreign capital and bring in the expertise needed to develop Iraq’s energy sector. These licensing rounds are not only about increasing production but also about boosting Iraq’s role in the global energy market. The inclusion of gas fields in these rounds is particularly significant, as it aligns with Iraq’s broader strategy of capturing flared gas and using it to meet domestic energy needs. Earlier, Iraq also allocated funds to build a new gas import facility in Al Fao, located in the southern part of the country. This project aligns with Iraq’s broader strategy to improve its energy infrastructure and secure reliable sources of energy to meet growing domestic demand. The facility will allow Iraq to import liquefied natural gas, providing a more stable and diversified energy supply for electricity generation and industrial use. Additionally, this facility could position Iraq as a regional energy hub, allowing it to potentially re-export gas to neighbouring countries in the future. The Prime Minister’s vision for Iraq’s energy future is closely tied to international co-operation. The success of Iraq’s energy projects will depend not only on domestic implementation but also on continued collaboration with global and regional partners. Iraq’s partnerships with international energy companies and neighbouring Gulf states are key to ensuring that the country can meet its energy goals while contributing to global energy stability. By connecting its national development objectives with global energy trends, Iraq is positioning itself as a critical player in the Middle East and beyond. Mr Al Sudani’s ambitious plans signal a new era for Iraq, one where the country is not only meeting its own energy needs but also helping to shape the future of global energy co-operation. While challenges remain, including the need for political stability and efficient project implementation, Iraq’s energy initiatives have the potential to transform the country’s economy and its standing in the global community. With continued focus on sustainability, regional co-operation and international investment, Iraq is poised to become a leading energy producer and a vital partner in the global energy landscape.