KRG signs $2.5 million deal for Erbil electricity grid upgrade

ERBIL, Kurdistan Region – The Kurdistan Regional Government (KRG) has signed a $2.5 million deal with a domestic energy company to connect a new Erbil power station to the electricity grid, the KRG's electricity ministry announced on Tuesday, in a project that is hoped will ease the "excessive pressure" on the city's electricity infrastructure.

The 3 billion dinar deal, signed with Iraqi energy company SHANDZ, will "extend cable for the Azadi Nwe-Runaki 33kV project," the electricity ministry said in a Facebook post.

The New Azadi-Runaki 33kV plant, built to ease the burden on the city's Old Azadi power station, is "important" to the distribution of electricity to downtown Erbil, according to the ministry.

"When the project starts to operate once the cables are extended, the electricity problem for neighborhoods whose power is given by the Old Azadi station will largely be solved," read the ministry's post.

The project should take 120 days to complete, the ministry said, urging SHANDZ to finish the project "on time.. and be committed to the design and the high quality of the project."

The Kurdistan Region and Iraq suffer from chronic electricity shortages and dilapidated infrastructure. The failure of successive Iraqi and Kurdish governments to alleviate the chronic shortages since the 2003 war has been a near-constant source of public anger.

The Kurdistan Region has 14 power plants, which altogether currently provide more than 3,000 megawatts of power. The Kurdistan Region needs to produce more than 5,000 megawatts to provide 24-hour electricity to its residents.
 
Theft of electricity and excessive consumption has exacerbated power shortages. In response, the KRG introduced new electric meters back in 2018. However, it failed to enforce their installation or monitor their usage, with residents finding ways to manipulate the devices.
 
The KRG approved a proposal earlier this year to privatize the Kurdistan Region's electricity sector, but action has yet to be taken to implement it.