Siemens Energy wins five Iraq substation contracts
Iraq's General Company of Electrical Energy Transmission a strategic agreement with the German company Siemens Energy to build five high-voltage direct current substations.
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Iraq, Baghdad: Iraq’s General Company of Electrical Energy Transmission a strategic agreement with the German company Siemens Energy to build five high-voltage direct current substations.
According to the strategic agreement sponsored by the Iraqi Minister of Electricity, the 400 kV substations will be installed in Baghdad, Diyala, Najaf, Karbala and Basra. Each substation will have a capacity of 1,500 MW. Work on the projects is expected to begin in early 2024. German export credit agency Allianz Trade Trust will provide most of the project financing, in collaboration with Iraq’s Finance Ministry.
MEED reports that the substations address the increasing demand for power transmission in Iraq, providing power to around 2.5 million homes. Their construction will contribute to achieving the required stability in the national electrical grid, improve voltage levels, and increase electricity supply hours.
Iraq witnesses daily power outages that may last up to 10 hours, but things worsen during the scorching summer when the temperature reaches 50 degrees Celsius. The main reason for this is the deterioration of the infrastructure, which has not been renovated for decades due to conflicts, corruption, and mismanagement.
Although Iraq is an oil-rich country, power plants in Iraq depend heavily on gas imported from Iran, which repeatedly cuts off supplies, according to AFP. Some Iraqis resort to electricity generators, which are sometimes not sufficient to secure daily needs such as operating air conditioners. To tackle the issue, power plants in Iraq need to produce 32,000 MW per day, but electricity production sometimes reaches 26,000 MW, according to Iraqi officials.
Source: Middle East Business Intelligence/Iraqi News
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