Basra: The Iraqi Ministry of Electricity has signed a contract with General Electric (GE) to build a gas-fired power plant in Basra Governorate with a production capacity of 3,000 megawatts. The plant will operate on a combined-cycle system and include four gas units, two steam units, and advanced seawater desalination technology to meet operational needs.

According to National Iraqi News Agency, the agreement was signed between the General Company for Electricity Production – Southern Region and Advanced Technology Systems Company, the project’s investor, under the ‘Take and Pay’ principle, which ensures payment only upon energy delivery. The investor will also be responsible for supplying the plant’s operating fuel, marking a major shift from previous contracts in which the state bore full responsibility for fuel provision.

During the signing ceremony, Minister of Electricity Ziyad Ali Fadel stressed the ministry’s commitment to accelerating strategic energy projects. He noted that Al-Faw City was chosen for its symbolic and strategic location near the Grand Faw Port and its planned electrical connection with Kuwait, strengthening Basra’s position as a key energy hub.

The minister added that Basra currently has 15 operating power plants with a total production capacity of 7,000 megawatts, exceeding the province’s actual need of 5,000 megawatts. The surplus is exported to neighboring provinces through newly opened 400 kV transmission lines.

He also revealed upcoming energy projects, including the ‘Basra Solar’ project with a capacity of 1,000 megawatts, the rehabilitation of units at al-Hartha Power Plant, and new investment opportunities aimed at enhancing the national power grid.