Iraq to Push $1.6 Billion of Solar and Wind Projects into Power Gap

---

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--As oil production and receipts continue to ramp up, Iraq is planning to invest up to $1.6 billion on solar and wind power projects over the next three years, which will add 400 megawatts (MW) to the national grid. This will help to fill the country's power gap, which causes daily blackouts. Currently, the power generation sector produces 8,800 MW against a requirement of 14,000 MW.

Invitations have been sent to about 25 leading companies to manufacture and install solar and wind power plants, according to the Ministry of Electricity. The invited companies include Toyota Tsusho Corporation (Tokyo, Japan), ABB Limited (NYSE:ABB) (Zurich, Switzerland) and Orascom Construction (Cairo, Egypt).

The ministry has allocated an initial $200 million from the 2013 budget to add 50 MW to the grid in 2013. This will be focused on deserted and border areas. Currently, solar power is rare in Iraq, except for some main street lighting.

The ministry plans to have 22,000 MW of generating capacity to meet demand by 2016 by upgrading existing plants and building new power projects to get ahead of the power gap.

The aim, in the long term, is for solar and wind energy to contribute 2% of the country's power generation total. Building solar and wind plants costs about $3.5 million to $4 million per MW of capacity delivered, but this is offset by lower running costs, as no fuel is needed to fire the generating units. The intention of the ministry is to save oil for coming generations, and not only sell it or burn it.

Iraq has the world's fourth-largest oil reserves and is now producing more than 3 million barrels a day for the first time in three decades.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.