Iraq’s Minister of Electricity, Ziad Ali, announced on Wednesday that he will meet with his counterpart from the Kurdistan Region in two weeks to discuss a potential energy exchange agreement for 2025. This comes as part of Baghdad’s ongoing efforts to secure energy independence and bolster the national grid to meet rising electricity demand.

The federal and regional governments already share a strong working relationship, with Iraq purchasing 900 megawatts of electricity daily from the Kurdistan Region, according to Ali. The upcoming talks aim to strengthen this partnership.

Despite Iraq’s rich oil and gas reserves, the country continues to struggle with chronic electricity shortages, heavily relying on gas imports from Iran, which are often interrupted. To compensate for these shortages, many Iraqis use private generators, which are both environmentally harmful and costly.

Minister Ali emphasized that Iraq is gradually moving away from dependence on these generators. “We will reduce reliance on private generators and move towards integrating with the national grid,” he said, noting that the transition will take time.

Iraqi Prime Minister Mohammed Shia’ al-Sudani has repeatedly expressed that improving the energy sector is a top priority, with a goal to make Iraq self-sufficient in gas within five years. A significant step toward this goal was taken in July 2023 when Baghdad signed a $27 billion contract with TotalEnergies to develop the country’s oil, gas, and renewable energy sectors.

This agreement is expected to help Iraq eliminate its need for gas imports and further strengthen its national grid.