Iraq Begins Purchasing Electricity from Kurdistan Amid Growing Summer Energy Deficit

As summer arrives and temperatures in several Iraqi provinces approach record highs exceeding 50 degrees Celsius on some days, the new government led by Ali Al-Zaidi has shifted its energy strategy to find quick solutions to reduce power outages. This shift includes a decision to purchase electricity from the Kurdistan Region, a measure previously considered exceptional.

Bagshdad has begun importing electricity from Kurdistan to supply the provinces of Kirkuk, Nineveh, Salahuddin, and Diyala. This move highlights the severe challenges facing Iraq's energy sector, despite the country possessing one of the world's largest oil reserves and having invested tens of billions of dollars in the sector over the past two decades.

The Ministry of Electricity anticipates that summer demand for power this year will reach approximately 60,000 megawatts, while targeted production is around 30,000 megawatts. This indicates a potential shortfall of up to 30,000 megawatts between actual need and supply, representing one of the largest energy gaps in the region.

Official data shows that actual electricity production in recent weeks has been about 27,000 megawatts. This decrease coincides with a roughly 50% reduction in Iranian gas supplies compared to contracted amounts, dropping from about 50 million cubic meters per day to nearly 25 million cubic meters.

Energy Management Challenges and Kurdistan's Role

Economic researcher Haider Al-Sheikh stated that Baghdad's decision to buy electricity from Kurdistan reveals that Iraq's energy crisis is not only about production capacity but also about how the electricity sector is managed.

Al-Sheikh explained that although Kurdistan does not possess gas fields or greater financial resources than the federal government, it has recently succeeded in reducing losses, expanding the use of smart meters, and improving revenue collection. These measures have generated a surplus that can now be sold to Baghdad.

He added that while purchasing electricity from Kurdistan offers a quick fix for the summer crisis, it does not address the root causes, since the current deficit nears 30,000 megawatts and the imported quantities remain limited compared to actual demand.

Al-Sheikh emphasized that true success lies in investing in local gas resources, eliminating losses in transmission and distribution networks, and expanding smart meter systems—steps that could recover thousands of lost megawatts annually.

Electricity Supply Improvements in Northern Provinces

Current data indicates that Kirkuk receives about 400 megawatts through transmission lines from Erbil and Sulaymaniyah, while Nineveh gets approximately 300 megawatts. Additionally, 120 megawatts have returned to Diyala after the reactivation of transmission lines, contributing to increased supply hours and improved grid stability in these provinces.

Specialists note that one key factor in Kurdistan's success is the implementation of smart meters, which have reduced losses and waste and enhanced revenue collection. This has allowed the region to generate a surplus electricity supply that it can market to the federal grid. In contrast, most Iraqi cities still face high loss rates, exceeding one-third of produced power in some areas.

Government Discussions on Expanding Kurdistan's Energy Model

A government source, speaking on condition of anonymity, revealed that during the recent visit of Kurdistan Regional Government Prime Minister Masrour Barzani to Baghdad, the "Ronaki" project—aimed at providing 24-hour electricity—was presented to federal officials.

The Kurdish delegation detailed the project's experience, including the use of smart meters, loss reduction, improved revenue collection, and the potential to leverage the companies and expertise involved in implementing the project within Kurdistan.

The source noted that Prime Minister Ali Al-Zaidi showed initial openness to studying the project and incorporating its methods into electricity sector reforms. However, some political factions expressed reservations due to disagreements with Kurdistan's leadership. Discussions on this matter are ongoing and have not been finalized.

Broader Energy Challenges Facing Iraq

Iraq currently confronts a dual challenge: rising energy demand driven by recurring heatwaves and continued reliance on imported gas to operate a significant portion of its power plants. This is despite the country having substantial gas reserves, a considerable portion of which is either flared or remains underutilized.

While electricity imports from Kurdistan provide a temporary relief to ease the strain on the network during this summer, experts estimate this is only a short-term solution to a deeper crisis involving production, fuel supply, losses, revenue collection, and investment. These issues will determine whether Iraq can achieve future energy self-sufficiency or will continue to depend on external electricity sources during peak demand periods.

Recent reports indicate that electricity outages in Iraq have occurred due to sudden drops in gas supply, underscoring the fragility of the current energy system.