Baghdad: Prime Minister Mohammed Shia' al-Sudani initiated the implementation phase of the Yusufiya thermal power plant project, which will boast a total capacity of 1400 megawatts, marking a significant move in Iraq's energy sector.

According to National Iraqi News Agency, al-Sudani commended all efforts that have led to the launch of this project, which had been stalled since 1990. The government is committed to completing this project to enhance the capabilities of Iraq's national electricity grid. The Prime Minister highlighted the modernization, expansion, and development that the electricity sector has undergone during his government's tenure, in line with national development goals.

Al-Sudani also stressed the importance of completing the energy cycle of production, consumption, and billing, avoiding policies that strain the state budget without generating adequate revenue. He introduced a financial and investment model intended to address the flaws of previous contracts, creating a more attractive investment environment. This approach aims to reduce tariffs and save up to 43% compared to prior agreements, thereby protecting public funds while considering investor profitability and state interests.

The Prime Minister underscored the critical need for rationalizing energy consumption and ensuring that production costs are covered through revenue collection. A specialized committee has been formed to review revenue collection processes, aligning them with production and distribution costs, and state treasury payments to the electricity sector. Additionally, the government is working on completing housing units and complexes that require a stable energy supply. A 20-year plan has been initiated to add 57,000 megawatts, in collaboration with Siemens and GE, integrating renewable and solar energy sources, and implementing long-term maintenance strategies based on sound planning principles.