Siemens and Iraq’s Ministry of Electricity signed an agreement to looks into plans for meet reconstruction goals for the country’s economic development that includes adding 11 gigawatts of power generation capacity in four years.
A Memorandum of Understanding (MoU) was signed by Qasim Al-Fahdawi, Minister of Electricity, and Joe Kaeser, president and CEO of Siemens AG, to examine a series of short, medium and long-term plans, Siemens said in a statement.
“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,” said 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,” he added, mentioning education, training, developing local skills and talent.
Under the “Roadmap for the Electrification of the New Iraq”, Siemens said it is ready to add 11 gigawatts (GW) of power generation capacity over four years to ensure 23 million Iraqis across the country have reliable and sustainable electricity 24/7.
This would boost current generation capacity by almost 50 per cent, Siemens said, adding that 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 company also envisions the creation of tens of thousands of jobs over the course of the projects. The roadmap emphasises people at its core – and is the result of a 12-month study to develop a comprehensive and tailored redevelopment plan. It focuses on energy, education, compliance and financing, aiming to advance sustainable economic development, national security and quality of life for the people of Iraq.
Siemens’ Iraq Roadmap outlines eight objectives to benefit the people of Iraq, the country’s national security and its economic development. These include 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. The company will also assist Iraq’s government in 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 utilising 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.
As part of its commitment to driving sustainable growth, Siemens intends to support social development in Iraq with a series of training and education programs. This includes technical and vocational training as well as transparency and anti-corruption education, in order to build a pool of highly skilled, local talent with a culture of compliance. 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.