Iraq's Cabinet has approved the principles of energy cooperation in Iraq between the Ministry of Electricity and Siemens Energy (Germany), and authorised proceeding with their implementation.

 

The cabinet meeting, chaired by Prime Minister Mohammed S Al-Sudani, directed the Ministry of Planning and the Ministry of Finance to incorporate the annual financial allocation for this cooperation into the 2025 Federal Budget Law, and granted the Minister of Electricity the necessary authorities to move forward with execution, exempting the process from standard government contract implementation regulations, said an Iraqi News Agency report.

 

The German company has already been involved in electricity projects in Iraq, including the award in 2023 of long-term service contracts for three power plants in Iraq as part of broader energy cooperation. In the same year, Siemens also signed a deal to develop Iraq's power network.

 

The cabinet also discussed the outcomes of the joint committees formed between the Federal Ministry of Oil and the Ministry of Natural Resources in the Kurdistan Region, and emphasised the urgent need to immediately begin the delivery of oil produced from fields within the region to the State Oil Marketing Organization (SOMO) for export via the Iraqi-Turkish pipeline through the port of Ceyhan, in accordance with the amended Federal Budget Law.

 

Meanwhile, the Minister of Electricity delivered a presentation on production status, project implementation progress, and operational status of power generation projects. He noted that actual production has now reached 28,000 megawatts, amid a rise in local demand, a significant increase compared to the 2022 production level of 19,000 MW.

 

The cabinet reviewed ongoing production projects totaling 15,000 MW, including solar, thermal, and combined-cycle stations, as well as the first phase of new investment stations with a capacity of 10,000 MW. In addition, contracts were signed with Siemens (15,000 MW) and GE (24,000 MW).