Author: PPD Team Date: 15/04/2025
Iraq has signed three memoranda of understanding (MoUs) with US entities to develop large-scale energy projects for reducing dependence on Iranian imports and diversifying its power sources. The Iraqi prime minister’s media office announced the agreements as part of the country’s broader energy strategy.
Under the first MoU, GE Vernova will develop combined-cycle gas power plants with a total capacity of 24 GW. This is expected to be Iraq’s largest and most advanced power generation project to date. The project may receive international financing support.
The second MoU was signed between Iraq’s Ministry of Electricity and UGT Renewables, a US-based firm. It involves the development of a 3 GW solar energy project, which will include up to 500 megawatt hours (MWh) of battery storage. The agreement also includes plans to modernise Iraq’s power transmission and distribution networks, along with the construction of up to 1,000 km of new high-voltage direct current (HVDC) transmission infrastructure.
The solar project will be backed by the Export-Import Bank of the United States and UK Export Finance. JP Morgan has been named as the lead arranger. A two-year programme will also be implemented to support technology transfer, training, and operations.
A third MoU was signed between the Iraqi Chambers of Commerce and the US Chamber of Commerce. This agreement is focused on promoting private-sector collaboration and supporting small and medium-sized enterprises (SMEs) in Iraq.