Iraq Signs Landmark MoUs for 27GW Power Projects with US Firms
Deal News | Apr 09, 2025 | Zawya
Iraq has entered into two pivotal memorandums of understanding (MoUs) with US companies, aiming to bolster its electricity sector significantly. The agreements focus on a mix of gas-fired and renewable energies, envisaging a total capacity addition of 27,000 megawatts (MW). The first MoU with GE Vernova involves the development of combined-cycle gas turbine power plants summing up to 24,000 MW, marking the largest electricity generation project in Iraq's history. This deal includes provisions for securing external financing from major global banks. The second MoU with UGT Renewables focuses on a 3,000 MW solar power project with a 500 megawatt-hours (MWh) Battery Energy Storage System, enhancement of power transmission lines, and the establishment of 1,000 km of new high-voltage direct current (HVDC) infrastructure. Both projects will receive backing from the United States and UK export banks, with JP Morgan as the lead financial arranger.
Sectors
- Energy
- Infrastructure
- Finance
Geography
- Iraq – The projects and agreements are centered in Iraq, impacting the country's energy landscape.
- United States – The US firms involved in these MoUs bring critical technology and financial support, highlighting US-Iraq collaboration in the energy sector.
- United Kingdom – UK Export Finance is involved in backing these projects, pointing to UK interests in the development of Iraq's energy infrastructure.
Industry
- Energy – The article discusses significant developments in Iraq's energy sector with projects in gas-fired and renewable power generation.
- Infrastructure – Included in the MoUs are plans for modernization and expansion of power transmission infrastructure, directly relating to national infrastructure improvements.
- Finance – The MoUs involve securing external financing and are supported by global financial entities, making the finance industry a relevant aspect of the arrangement.
Financials
- 27,000 MW – Total capacity of power projects planned under the MoUs.
- 24,000 MW – Capacity of gas-powered projects to be developed by GE Vernova.
- 3,000 MW – Capacity of solar power projects to be developed by UGT Renewables.
- 500 MWh – Capacity of the Battery Energy Storage System in the solar project by UGT Renewables.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| GE Vernova | Bidding Companybuyer | Companies | GE Vernova is tasked with developing 24,000 MW combined-cycle gas turbine power plants in Iraq. |
| UGT Renewables | Bidding Companybuyer | Companies | UGT Renewables will develop a 3,000 MW solar power project integrated with a Battery Energy Storage System. |
| Export-Import Bank of the United States (EXIM) | Other Companies | Government | EXIM is providing financial backing for the projects, indicating US government support. |
| UK Export Finance | Other Companies | Government | UK Export Finance is also backing these projects, highlighting UK government support. |
| JP Morgan | Other Companies | Companies | JP Morgan acts as the lead arranger for financial aspects of the projects. |
| Mohammed Shia Al-Sudani | Other Companies | People | Prime Minister Mohammed Shia Al-Sudani oversaw the signing of the MoUs. |