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November 28, 2023[You must be registered and logged in to see this link.]
Baghdad/Al-Masala Al-Hadath: The spokesman for the Ministry of Electricity, Ahmed Musa, said that the slums will be included with smart meters and collections, indicating that the Ministry of Electricity is a major loser because it sells the unit below its cost price, in a shocking statement that reveals the depth of the electricity crisis in Iraq.
This statement indicates significant financial losses for the Ministry of Electricity, which increases the financial burden on the government and the electrical system in general.
It also reveals that the current system of selling electricity is unsustainable and unable to achieve financial balance.
These losses affect the quality of electrical services provided to citizens, as financial weakness may lead to reducing investments in developing and maintaining the electrical network, which requires new policies to achieve financial balance in the electricity sector, whether through improving the pricing structure or developing better infrastructure.
To manage the electricity crisis in Iraq, there must be radical reforms and effective policies aimed at improving the financial and operational efficiency of the Ministry of Electricity and achieving a balance in providing basic services to citizens.
The energy sector in Iraq is suffering from a double blow, represented by unstable growth in demand, coupled with a lack of investment and a lack of reforms in generation, transmission and distribution. What resulted was a growing mismatch between supply and demand.
Although some progress was made in expanding the country's power generation capacity, the additions did not match the announced plans and growing demand, which led to an electrical energy crisis that has been raging for decades.
It is estimated that peak demand in Iraq reached 34 gigawatts in the summer of 2022. However, the available capacity for power generation is only 23.4 gigawatts, despite spending more than $81 billion on the sector in 15 years.
The Iraqi authorities headed to contracting with international companies and electrical interconnection with neighboring countries, including Saudi Arabia, where the Saudi Minister of Energy, Prince Abdulaziz bin Salman, signed a memorandum of understanding in the field of electrical interconnection between the two countries at the beginning of 2022, so that the project constitutes a first step for cooperation in this field. .
The project includes a line that reaches Basra, carrying 500 megawatts, and another line towards Samawah, carrying 300 megawatts, which are the two Iraqi governorates with the most power outages. There is also a line that will reach Arar and Yusufiyah, near Baghdad, with a capacity of one thousand megawatts.
Iraq needs 25 to 30 million cubic meters of gas per day to operate the production stations affiliated with the Ministry of Electricity, and according to specialists, the country loses about 40 billion dollars annually due to the lack of energy production. These losses include the large funds that Iraqis spend on purchasing energy, losses in the industrial and agricultural sectors, and health problems. Caused by constant power outages.
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