[size=30]Al-Khairat Station.. The first steps of mandatory collection: How will the investor sell electricity to consumers?
2021-12-31
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Yes Iraq: Baghdad
The Cabinet session held on Thursday included a decision related to the Al-Khayrat steam station, which is a very important station not related to the production of additional energy for consumers, but its importance is directly related to the operation of the Karbala refinery, one of the largest refineries in Iraq, which will add oil derivatives in large quantities. Derivatives from abroad, especially gasoline.
Al-Khayrat steam electric station went through several problems. In 2018, it was referred to the Car Company, then the matter was canceled and transferred to Hyundai Company in 2019, and then the matter was canceled again and finally it was referred to Harlow.
The station, which has a capacity of approximately 1,400 megawatts, seems to be operating in a different way from other electrical stations in Iraq, as the investing company will be responsible for producing energy, purchasing fuel and selling energy to consumers through the company’s marketing of energy ready for sale, in a manner similar to “generator owners.” The operator of the station shall be responsible for setting up counters for the purpose of actual collection.
Where the Cabinet session included approving the recommendation of the Ministerial Council for Energy (177 for the year 2021), regarding the Al-Khayrat Steam-investment power plant project, and according to the financial powers with several measures represented by “the Ministry of Electricity, in agreement with the investing company, to take measures to ensure the provision of tax revenues; To reduce the size of the gap in spending from the Ministry of Finance, represented by these measures, by the investing company establishing a company specialized in marketing to provide investment opportunities that would work to attract industrial consumers in the field of middle and heavy industries; In order to reduce the Ministry of Finance’s responsibilities in providing energy purchase costs on the one hand, and providing stability and sustainability in energy saving on the other hand, which would improve the reality of industrial investment and reduce the great waste of state resources resulting from small power stations operating with expensive gas oil fuels, as well as other environmental damage.
The decision included a condition that “the above-mentioned specialized company shall operate for a period of one year before starting the operation of the second phase, and its work shall continue for a period of two years after operation; For the purpose of managing the above-mentioned activities for all the targeted areas of the expansion project, which provide stable electrical energy at cheap costs.”
In addition, the investing company shall prepare no less than (100,000) one hundred thousand meters (according to the specifications of the Ministry of Electricity) and no more than (150,000) one hundred and fifty thousand smart meters with their installation in the places specified by the Ministry of Electricity for the areas of family and industrial consumption and training of technical personnel and engineering necessary to secure an appropriate proportion of returns and wages; To reduce the size of the responsibilities of the Ministry of Finance and the mandatory start of collection procedures by the concerned ministry according to a specific program to enhance revenues.
The investor installs production discharge systems (OHL) from the second stage at his own expense, including secondary stations and power transmission lines, in order to secure the discharge of the entire product to the national network of the targeting area, and to overcome any defect in the Ministry of Electricity's commitment to receive electrical energy.
This matter and the determination of mandatory levying through the company and marketing its energy, may prevent one of the most important reservations made to this contract by the previous parliament, which is to own the station to the investor, as the state will not purchase energy from the owner of the station, the investor, but rather it will be purchased by the citizens. Consumers and industrial entrepreneurs themselves.
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