In a move aimed at addressing chronic electricity shortages, the Iraqi Council of Ministers has approved contracts between the electricity ministry and two Kurdish firms to enhance power provision across the country during the upcoming summer months.

According to the approved agreements, Mass Group Holding will undertake the responsibility of supplying electricity to northern regions of federal Iraq and integrate its output into the national power grid over the next three months. Concurrently, KAR Company has secured a contract to procure electricity from Turkey at a reduced cost.

Prime Minister Mohammed Shia’ al-Sudani underscored the critical need for continuous power services during the summer, directing urgent maintenance efforts to add approximately 1,440 megawatts to the national grid. His office emphasized the cancellation of previous exemptions for industrial, commercial, and governmental facilities, ensuring equitable distribution of electricity for the next quarter.

Iraq, endowed with substantial oil and gas reserves, nevertheless faces persistent energy deficits, exacerbated during peak summer temperatures exceeding 50 degrees Celsius. Prime Minister Sudani has consistently prioritized energy sector reforms, outlining ambitions for Iraq to achieve gas self-sufficiency and eliminate natural gas imports within the next five years.

For years, Iraq’s electricity infrastructure has heavily relied on Iranian gas imports to fuel its power generation plants, with Iran supplying 9.4 billion cubic meters of gas to Iraq in 2022 alone.

The approved contracts mark a strategic step towards bolstering Iraq’s energy resilience and meeting the growing demand for electricity, signaling ongoing efforts to enhance national energy security amid challenging environmental and economic conditions.