GE said it agreed with the Iraqi Ministry of Electricity to develop the country’s power sector and support economic development.
A Principles of Cooperation (POC) was signed by Minister Qasim Al Fahdawi, Iraq’s Minister of Electricity, and Joseph Anis, president and CEO of GE’s Power Services in Africa, South Asia and the Middle East.
As an immediate priority, GE said it will deploy power technologies and undertake upgrades at existing power plant sites to bring approximately 1.5 GW of additional power online by 2019 – the equivalent electricity needed to supply up to 1.5 million Iraqi homes, as well as undertake maintenance and rehabilitation services to secure the availability of another 7 GW that are currently operating.
Additionally, the agreement includes upgrades and services for existing power plants; the conversion of simple cycle power plants to combined cycle, which can help bring new power online without consuming additional fuel or releasing further emissions; as well as the establishment of new power plants with efficient, reliable power generation technology. Furthermore, GE will develop substations and overhead lines across the country, and a centralised energy management system covering generation, transmission and distribution. These initiatives will add up to 14 GW of power and strengthen grid connectivity.
Overall, GE’s activities will help the government realise savings and recover losses of up to $3 billion per year. Repairs, maintenance, upgrades and other services will help to reduce the operating costs of existing power plants. To further improve the transmission and distribution of power, GE will undertake comprehensive decongestion network studies, as well as advisory services to reduce collection recoverable losses. In addition, GE is offering its unique solution for integrating the capture of flared gas and power generation using GE’s advanced Gas to Power technologies. In July, Baker Hughes, a GE company signed a contract with the Iraqi Ministry of Oil for a modular natural gas plant solution for flared gas recovery in the Nassiriya and Al Gharraf oilfields.
GE will assist the Government of Iraq to unlock financing for these projects through its extensive relationships with Global Export Credit Agencies and financial institutions.
Meanwhile, GE also expects to build local capabilities by establishing a Technology Centre consisting of a Repairs Centre, a Monitoring & Diagnostics Centre and a Training Centre.
Mussab Almudaris, official spokesperson of the Iraqi Ministry of Electricity, said, “Our focus is on rebuilding Iraq to provide stable, sustainable development for our people, and developing the electricity sector is a critical component of these efforts. GE’s action plan is an ideal fit for our needs, offering a holistic package that brings industry-leading technologies, financing and social services to meet our most critical immediate and long-term needs.”
Russell Stokes, president and CEO of GE Power said, “We understand how important it is to deliver power immediately and our holistic action plan brings together advanced solutions, financing, local investments, trainings and social services that are expected to benefit families, businesses and industries across Iraq.”
GE employs up to 300 people in Iraq and has three offices in the country – in Baghdad, Basra and Erbil. Today, GE and its partner CFMI power more than 90 percent of the aircrafts operated by Iraqi Airways, the company’s technologies contribute up to 55 percent of the current electricity production in Iraq and nearly 4,000 GE Healthcare products are deployed in hospitals and clinics across the country.