Iraq signs $1bn deal with Shanghai Electric for Baghdad plant extension

Iraq’s electricity ministry has signed a $1bn deal with China’s Shanghai Electric to increase the size of a power station south of Baghdad from 1320 MW to 2540 MW.
 
According to Reuters the plant, which is currently under construction in the town of Zubaidiy, was initially going to have 4330 MW generators, but under the new deal, it will also feature two 610 MW units. Shanghai Electric began work on the project in May 2010, when it was valued at $924m.
 
Improving the stability of Iraq’s national grid is one of the government’s priorities, given that presently, power is typically only available for a few hours a day. Last month, Iraq’s electricity minister said that the country needs over 15 GW to meet peak summer demand compared to a projected supply of 7 GW, implying a shortfall of 8 GW.
 
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