Iraq signs two-year contract with Iran to import electricity

Iranian Minister of energy, Reza Ardakyanian, announced on Thursday signing a two-year contract to export electricity to Iraq.

The announcement took place during his official visit to Baghdad this Wednesday.

In a statement reported by the official Iranian news agency, “IRNA”, Ardakyanian said that, “the previous contracts for exporting electricity to Iraq were limited to one year. This time, we signed a two-year contract – 2020 and 2021”.

The Iranian Energy Minister added, “During the visit, Iran received about 400 million dollars, equivalent to half of payment dues from selling electricity to Iraq”.

Currently, Tehran is supplying Iraq with 1,200 megawatts of electricity via four lines: Khorramshahr-Basra line, Karkhah-Al-Amara, Kermanshah-Diyala and Sarbel Zahab-Khanaqin. Simultaneously, the gas imported from Iran contributes to operating Iraqi electricity stations that supply the system with approximately 3,300 megawatts.

This agreement came after the US announced, last month, a 120-day exemption on importing electricity from Iran, following the formation of the government of Prime Minister Mustafa al-Kadhimi, as Baghdad does not have the capacity to meet the local demand of electric power.

According to the Ministry of Electricity, Iraq’s production of electrical energy is 13,500 megawatts. By introducing new generating units into service, the ministry plans to add 3,500 megawatts this year. However, the sum is still short if compared to the net demand estimated by 20 thousand megawatts.