Investments in Iraq's electricity sector are expected to accelerate in the coming years and Iran’s private sector should have a bigger share of the neighboring country’s market, said a member of board of directors of the Iran-Iraq Joint Chamber of Commerce.
Alireza Kolahi said technical and engineering services is what the private sector can and should offer to the Arab nation as it embarks on the tough task of reconstruction after four decades of war and destruction, ILNA reported.
“Our private sector is capable of building power plants and utility poles and exporting transmission lines, cables and transformers,” he said.
Referring to reports by the International Energy Association, Kolahi said the government in Baghdad has plans to export 11 million barrels of oil per day and to achieve the goal it will invest $300 billion in the oil sector over the next 15 years.
“Iraq on average will invest $2 billion a year in its energy sector and 15% of this amount will go for developing its power industry. This is where we can come in” and do our fair share in its post-war reconstruction.
Iran’s electricity industry ranks 14th in the world and first in the Middle East in terms of power generation with an installed capacity of 72,000 MW. It is one of the leading countries in power plant construction and currently exports electricity to Iraq, Pakistan and Afghanistan.
> Chronic Power Shortage
Due to a chronic power shortages and its negative impact on the economy, Iraq’s Ministry of Electricity plans to increase power production from the current 8,500 MW to 20,000 MW.
The Iraqi Parliament's Oil and Energy Committee published a report from the prime minister's office last November indicating that the Arab nation is losing close to $40 billion annually due to the power crisis.
Past reports said even the capital Baghdad suffers from blackouts lasting several hours in the extremely hot summers when the mercury climbs to above 45 Celsius.
In recent years Iranian companies have been active in developing Iraq’s power industry. MAPNA Group implemented Najaf Power Plant project near the southern city of Najaf and the Al-Sadr Gas-Powered Plant in Baghdad.
In July MAPNA signed a $2.5 billion contract with the Iraqi Shamara Holding Group to provide technical and engineering services for the construction of a 3,000-MW power plant in Basra in the south of the country.
Rumaila Power Plant’s first unit will become operational by 2020. When completed, it will produce 18 billion kilowatt hours of electricity per annum.
Iran is Iraq’s second-largest trading partner after Turkey, exporting everything from gas and electricity to fruits and vegetables, across several routes along the 1,500-kilometer joint border. Iran’s exports to the neighboring nation increased 45% in the first half of the current fiscal (March-September).
