Iraq’s chronic power woes see some temporary relief with a new five-year natural gas deal with neighboring Iran. The agreement, signed by the Iraqi Ministry of Electricity and the National Iranian Gas Company, aims to deliver 50 million cubic meters of gas per day to fuel the country’s electricity grid.
Iraq’s aging electricity infrastructure struggles to meet the high demand for power, leading to frequent and frustrating outages. This gas deal is seen as a stop-gap measure while Iraq develops its own domestic gas fields for long-term energy security.
“The deal will ensure the sustainability of power plants and keep pace with peak loads and the increasing demand for electricity,” stated Iraq’s Ministry of Electricity.
However, the agreement raises concerns about Iraq’s dependence on Iran, a nation under US sanctions since 2018. The US has granted Iraq temporary waivers to continue these energy imports but has warned they may not last if Iraq doesn’t diversify its energy sources.
Iraq relies heavily on Iran for both natural gas and electricity imports, with nearly a third of its power grid fueled by Iranian energy. These imports have been unreliable, with past instances of Tehran reducing gas supplies due to unpaid bills, causing widespread blackouts.
Efforts by Baghdad to diversify its energy partners, including talks with Saudi Arabia, Turkey, Jordan, and Kuwait, haven’t yielded significant results yet.
Nearly two decades after the fall of Saddam Hussein, Iraq continues to grapple with providing reliable electricity to its citizens. Decades of neglect, corruption, and mismanagement have left the sector in a dire state. Past government plans to address the issue have been marred by embezzlement and failed to improve the lives of ordinary Iraqis. As a result, Iraq remains heavily reliant on Iran to meet its basic energy needs.
Power outages are a daily reality for Iraqis across all social classes. The gap between available electricity and national demand is projected to widen in the coming years, further straining the system. Iraq’s electricity consumption has grown by nearly 30% in the past five years, outpacing the government’s ability to expand its power generation capacity.
