SULAIMANI (ESTA) — Iraq on Wednesday signed a initial agreement with state-owned POWERCHINA to build solar power plants with a capacity of 2,000 megawatts, the prime minister’s press office said.
The premier’s press office said in a tweet that the first stage of the project will have a capacity of 750 megawatts.
The Iraqi electricity ministry and the Chinese company signed the agreement under the auspice of Prime Minister Mustafa al-Kadhimi, his office tweeted.
“The project will contribute to increasing the production of electrical energy, to supply the system with clean renewable energy,” PM’s press office said.
Iraq is under increasing pressure from the United States to wean itself off electricity and gas imports from Iran, which has been subject to U.S. sanctions since 2018.
The country bought gas and electricity from neighboring Iran to supply about a third of its power sector, which has been worn down by years of conflict and poor maintenance, and is unable to meet the needs of the country’s 40 million population.
On August 10, Iran said it had suspended electricity exports to Iraq due to a surge in domestic demand.
The suspension of electricity exports to Iraq comes as the country is already suffering from power outage due to a surge in demands and attacks on pylons in several provinces.
Last month, areas in the country’s south were plunged into darkness for several days after a series of similar attacks.
Around the same time, Iran briefly suspended its gas and electricity exports because of Iraq’s failure to pay a $6 billion energy debt.
The U.S. blacklisted Iran’s energy industry in late 2018 as it ramped up sanctions, but has granted Baghdad a series of temporary waivers, hoping that Iraq would wean itself off Iranian energy.
The failure of Iraq’s power system is particularly acute in the baking hot summer months, often a time of social protest exacerbated by electricity shortages, when temperatures shoot past 45 degrees Celsius (113 Fahrenheit).
*This story was updated at 09:03 p.m. EBL time
