Reuters reported that Iraq plans to spend up to USD 1.6 billion on solar and wind power stations over the next 3 years to add 400 MW to the national grid to help curb daily blackouts.

Nine years after the US led invasion that toppled Saddam Hussein investment is needed in most of Iraq's industries not least power generation which produces just 8,800 MW of the 14,000 MW needed. The dilapidated national grid supplies only a few hours of power a day leaving Iraqis to swelter in the summer months when temperatures can top 50 degrees Celsius.

Mr Laith al Mamury the head of the planning and studies department at the ministry of electricity said that invitations have been sent to about 25 leading companies to manufacture and install solar and wind power plants. The companies include Japan's Toyota Tsusho Corporation Swiss engineering group ABB and Egypt's Orascom Construction .The ministry has allocated an initial USD 200 million from the 2013 budget to add 50 MW to the grid next year focusing on deserted and border areas

The ministry has plans to reach 22 GW of power generation capacity to meet demand in 2016 by upgrading and building new power projects to solve the chronic shortages.

Mr Mamury said that each MW of solar or wind energy cost around USD 3.5 to USD 4 million but the initial outlay would be offset by lower running costs because the stations do not need fuel to operate. In the long term the aim is for solar and wind energy to account for 2% of power generation volume. Opec member Iraq has the world's fourth largest oil reserves and is producing more than 3 million barrels per day for the first time in three decades.

Source - Reuters

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