GE signed Principles of Cooperation (POC) with the Iraqi Ministry of Electricity to develop the country’s power sector.
The plan is expected to generate up to 14 gigawatts (GW) of power, create up to 65,000 direct and indirect jobs, support the government to realize savings and recoverable losses of up to $3 billion per year, establish a local technology center and support water and healthcare access.
The POC was signed by Minister Qasim Al Fahdawi, Iraq’s Minister of Electricity, and Joseph Anis, President & CEO of GE’s Power Services in Africa, South Asia, and the Middle East. The comprehensive plan builds on GE’s legacy of continuous presence and commitment to bring progress to the people of Iraq over the past 50 years, and is comprised of the following key tenets:
1. Supporting the path to energy security with 14 GW. As an immediate priority, GE will deploy proven fast power technologies and undertake upgrades at existing power plant sites to bring approximately 1.5 GW of additional power online by 2019 – the equivalent electricity needed to supply up to 1.5 million Iraqi homes, as well as undertake maintenance and rehabilitation services to secure the availability of another 7 GW that are currently operating. In addition, the agreement includes upgrades and services for existing power plants; the conversion of simple cycle power plants to combined cycle, which can help bring new power online without consuming additional fuel or releasing further emissions; as well as the establishment of new power plants with efficient, reliable power generation technology. Furthermore, GE will develop substations and overhead lines across the country, and a centralized energy management system covering generation, transmission, and distribution. These initiatives will add up to 14 GW of power and strengthen grid connectivity.
2. Realizing $3 billion in savings and recoverable losses annually. Overall, GE’s activities will help the Government realize savings and recover losses of up to $3 billion per year. Repairs, maintenance, upgrades, and other services will help to reduce the operating costs of existing power plants. To further improve the transmission and distribution of power, GE will undertake comprehensive decongestion network studies, as well as advisory services to reduce collection recoverable losses. In addition, GE is offering its unique solution for integrating the capture of flared gas and power generation using GE’s advanced Gas to Power technologies. In July, Baker Hughes, a GE company signed a contract with the Iraqi Ministry of Oil for a modular natural gas plant solution for flared gas recovery in the Nassiriya and Al Gharraf oilfields.
GE will assist the Government of Iraq to unlock financing for these projects through its extensive relationships with Global Export Credit Agencies and financial institutions.
As part of the proposals included in the POC, as well as GE’s commitment to a shared future and the progress of the Iraqi people, the company also expects to:
1. Build local capabilities. GE plans to establish a local Technology Center comprising a Repairs Center, a Monitoring & Diagnostics Center and a Training Center.
2. Contribute to providing critical services to local communities. GE intends to supply three trailer-mounted mobile water treatment units to help deliver drinking water to contribute to the everyday needs of the people of Basra. The company also plans to provide neonatal intensive care equipment and advanced medical care training for nursing staff at a neonatal intensive care center to meet the need for specialized healthcare services.
Iraq Business News
21/10/2018
