Iraq Approves Summer Electricity Support Plan, Free Fuel for Generators and Progress on Power Projects

Iraq’s Council of Ministers approved a series of decisions aimed at strengthening electricity provision during the summer months.
The measures were adopted during the Cabinet’s 19th regular session, chaired by Prime Minister Mohammed Shia Al-Sudani.
Among the key decisions, the Cabinet announced free fuel allocations for private generators during the peak heat of June, July, and August—at a rate of 45 liters per kilovolt-ampere (KVA). However, this distribution comes with strict performance conditions.
According to a statement from the Prime Minister’s media office, “Generators must provide citizens with no less than 12 hours of electricity per day, in rotation with national grid power, ensuring a minimum supply of 20 hours daily.”
In addition to immediate summer relief, Al-Sudani directed the Ministry of Electricity and the General Secretariat of the Council of Ministers to convene a consultative meeting to resolve financial delays hindering the Khayrat Thermal Power Plant investment project.
The Cabinet also renewed a 150-megawatt “Take and Pay” electricity agreement and authorized the Ministry of Finance to proceed with a loan backed by German and international credit agencies. This funding will support Phase II projects with Siemens Energy, which includes installing three 400-kilovolt and five 132-kilovolt substations.
On the clean energy front, the media office confirmed that the Cabinet had approved a bill for Iraq to join the International Solar Alliance (ISA) Framework Agreement of 2016. The approval includes a reservation making clear that Iraq’s accession “does not imply recognition of Israel.”
11/05/2025