Iraq signed a memorandum of understanding (MoU) with General Electric to develop the country’s power infrastructure, the electricity ministry said in a statement on Sunday.
The plan is expected to generate up to 14 gigawatts (GW) of power, create up to 65,000 direct and indirect jobs, support the government to realize savings and recoverable losses of up to $3 billion per year, establish a local technology center and support water and healthcare access.
As an immediate priority, GE will deploy proven fast power technologies and undertake upgrades at existing power plant sites to bring approximately 1.5 GW of additional power online by 2019 – the equivalent electricity needed to supply up to 1.5 million Iraqi homes.
It will also undertake maintenance and rehabilitation services to secure the availability of another seven GW that are currently operating.
In addition to that, the agreement includes upgrades and services for existing power plants, the conversion of simple cycle power plants to combined cycle, which can help bring new power online without consuming additional fuel or releasing further emissions as well as the establishment of new power plants with efficient, reliable power generation technology.
GE will also develop substations and overhead lines across the country and a centralized energy management system covering generation, transmission and distribution.
Its activities will help the government realize savings and recover losses of up to three billion dollars per year.
Repairs, maintenance, upgrades and other services will help to reduce the operating costs of existing power plants.
To further improve the transmission and distribution of power, GE will undertake comprehensive decongestion network studies as well as advisory services to reduce collection recoverable losses.
In July, Baker Hughes, a GE company signed a contract with the Iraqi Ministry of Oil for a modular natural gas plant solution for flared gas recovery in the Nassiriya and al-Gharraf oilfields.
GE will assist the Iraqi government to unlock financing for these projects through its extensive relationships with Global Export Credit Agencies and financial institutions.
The MoU was signed by Iraq’s Minister of Electricity Qasim al-Fahdawi and President & CEO of GE’s Power Services in Africa, South Asia and the Middle East Joseph Anis.
