The Ministry of Electricity of the Republic of Iraq and Siemens have entered a milestone agreement to seek the implementation of the company’s roadmap for repowering Iraq.
Signed by Qasim Al-Fahdawi, minister of electricity, and Joe Kaeser, president and CEO of Siemens AG, the Memorandum of Understanding (MoU) will examine a series of short, medium and long-term plans to meet the reconstruction goals of Iraq and support the country’s economic development.
Joe Kaeser, CEO of Siemens AG, and Qasim Al-Fahdawi, Minister of Electricity, signed the MoU.
“Our commitment to the Iraqi people stands strong. We promised them to achieve affordable and reliable power supply, help with anti-corruption, build schools and hospitals and create thousands of jobs. Education, training and developing local skills and talent are key elements for us to contribute to building the New Iraq. Today’s agreement on the Siemens roadmap is a significant step towards fulfilling that promise,” said Joe Kaeser. “We are ready to start and look forward to working closely with the Iraqi government to immediately produce noticeable improvements for the Iraqi people.”
Under the “Roadmap for the Electrification of the New Iraq”, Siemens will add 11GW of power generation capacity over four years to ensure 23 million Iraqis across the country have reliable and sustainable electricity.
This would boost current generation capacity by almost 50%. The economic viability of the plan is secured by billions of US dollars in potential fuel savings and revenue generation for the electricity sector, supporting the development of the future Iraq.
The tailored redevelopment plan focuses on energy, education, compliance and financing, aiming to advance sustainable economic development, national security and quality of life for the people of Iraq.
The Iraq Roadmap outlines eight objectives:
- Reducing energy losses
- Introducing smart grids
- Strengthening the transmission grid
- Modernising existing power plants
- Adding new generation capacities in deprived areas
- Connecting Iraq to the Arab Gulf region
- Putting Iraq’s national resources to work, and
- Investing in its people.
Modernising the country’s energy infrastructure is intended to be completed in stages, from immediate improvement for up to 300,000 people, which can be operational within three months, to medium and long-term projects that require between 10 and 24 months’ completion time and beyond.
Iraq’s government will also be securing appropriate finance packages provided by international commercial banks, Export Credit Agencies and supported by the German Government.
The roadmap lays out plans to use Iraq’s valuable natural resources more efficiently by utilizing flare gas capture and treatment technologies to deliver a domestic source of fuel to Iraq’s power generation sector, as well as create a long-term source of revenue for the government to finance power generation, transmission, and distribution projects.
Technical and vocational training, as well as transparency and anti-corruption education, will support the development programme. Under the patronage of the German Federal Ministry for Economic Cooperation and Development (BMZ), Siemens aims to provide vocational training, starting with 1,000 young Iraqis.