Iraq has signed memoranda of understanding (MOUs) with the US to develop power plants and an integrated solar energy project in Iraq, according to the Iraqi prime minister’s media office announcement.
This development comes as Iraq, a key member of the Organization of Petroleum Exporting Countries, seeks to diversify its energy sources and reduce its reliance on Iranian power imports, as reported by Reuters.
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Under the first of the MoU, GE Vernova will develop combined-cycle gas power plants with a combined capacity of 24GW.
This initiative represents the largest and most modern project in Iraq’s history, with the potential to secure external financing from international banks.
Iraq’s Ministry of Electricity and US-based UGT Renewables signed the second MoU to develop a 3GW solar energy project with the provision of battery storage systems of up to 500 megawatt hours (MWh).
The MoU also encompasses the modernisation of power transmission and distribution networks and the establishment of up to 1,000km of new high-voltage direct current transmission infrastructure.
A two-year programme focused on technology transfer, training, operation and maintenance is also included in the MoU.
The project will receive support from the Export-Import Bank of the United States and UK Export Finance, with JP Morgan serving as the lead arranger.
A third MOU, signed between the Iraqi Chambers of Commerce and the US Chamber of Commerce, focuses on fostering private-sector cooperation and supporting small and medium-sized enterprises.
In March 2025, the US Department of State did not renew the sanctions waiver, which allows power imports from Iran. Iraq could face electricity shortages following its expiration.
