Iraq may experience power cuts as the US ends its sanctions waiver for electricity purchases from Iran.
The waiver, which expired on 8 March 2025, allowed Iraq to buy electricity from Iran without violating US sanctions, as reported by The Economic Times.
The US Department of State has not renewed the waiver, aligning with President Trump’s “maximum pressure campaign” on Iran.
The campaign aims to “end Iran’s nuclear threat, curtail its ballistic missile programme and stop it from supporting terrorist groups.”
The US Embassy in Baghdad urged Iraq to reduce its reliance on Iranian energy sources and welcomed the Iraqi Prime Minister’s commitment to achieving energy independence.
Despite its oil and gas resources, Iraq has faced electricity shortages due to war, corruption and mismanagement. It has become heavily reliant on Iranian gas and electricity imports to meet its needs.
Power outages are frequent, especially during summer, forcing many Iraqis to depend on diesel generators or endure temperatures exceeding 50℃.
The expired waiver applied to direct electricity imports, and it remains uncertain if Iraq can continue importing gas from Iran to fuel its power plants.
The US Embassy stated that Iranian electricity imports constituted only 4% of Iraq’s consumption.
However, Ahmad Moussa, spokesperson for Iraq’s Ministry of Electricity, warned that losing gas imports could result in a 30% reduction in the electricity supply.
Moussa noted that “Iranian gas had already stopped supplying power plants in Baghdad and the central Euphrates region for the past two months, and the supply to southern power plants had been unstable.”
A senior official, who wished to remain unnamed, stated that Iraq might face a “loss of approximately 8GW of energy from power stations reliant on Iranian gas, in addition to a further 500MW of electricity directly provided by Iran.”
Meanwhile, QatarEnergy has partnered with TotalEnergies to develop a 1.25GW solar project in Iraq’s Basra region, pending regulatory approvals.
