GE bags $1.4B powergen orders from Iraq

General Electric (GE) has received orders totaling more than $1.4 billion from Iraq’s electricity ministry to deliver over 2,000 megawatts (MW) of electricity via new power plants, technology upgrades and maintenance services, Kallanish Energy learns.

Under the deal, announced Wednesday, the conglomerate will set up the Samawa and Dhi Qar power plants, initially supplying them with four, simple-cycle gas turbines by 2018.

In a second phase, the turbines will be combined and GE will supply steam generators, technology and serve as the EPC (engineering, procurement, construction) contractor for the projects. Together the two plants will add 1,500 MW to the grid.

Another 580 MW of electricity will come from power generation and maintenance projects in four power plants, part of the government’s Power Up Plan Phase II. Six other plants, offering roughly 1,750 MW of existing capacity, will undergo maintenance to enhance their efficiency and reliability.

“We’re focused on delivering reliable, uninterrupted and efficient electricity supply for both residential and commercial use,” said the ministry’s spokesman, Musaab al-Mudarris. “With demand for electricity increasing every year, a transformational approach is required that is led by new projects and technology upgrades.”

GE said it’s working with regional and international institutions to facilitate financing to help the Iraqi government to execute the projects. “GE has helped the country secure $2 billion in financing for projects in the energy sector leveraging its global sourcing capabilities coupled with its strong relationships with lenders,” it said.

The U.S. conglomerate delivered over 700 MW of additional power to the country last year under the Phase I of the government’s Power Up Plan.