Power Sector Analysis

Iraq's Electricity Sector, Explained

Who runs Federal Iraq's power system, how generation, transmission and distribution fit together, and where the country's 19 GW demand gap actually sits — a starting point for investors, contractors and operators entering the sector.

Iraq Power at a Glance

How Iraq's Electricity Sector Works

The Iraqi electricity system is entirely state-owned and operated through the Ministry of Electricity (MoE), which sits at the top of a three-tier value chain: generation → transmission → distribution. Knowing which state company controls each tier is the first step to understanding how the sector actually operates.

Phase 1

Generation

Fuel converted to electricity at steam, gas, hydro and diesel plants across all provinces.

18,856 MW
Avg. actual output 2024
Phase 2

Transmission

High-voltage backbone at 400 kV and 132 kV moves bulk power from plants to load centres.

846 lines
18,000 km of HV network
Phase 3

Distribution

33/11 kV networks feed 5.6 million metered consumers across all 15 Federal governorates.

5.6 M
Registered subscribers

State Company Coverage by Governorate

The MoE operates through 12 state-owned general companies split across generation, transmission and distribution — each assigned to a fixed regional footprint. Toggle between Distribution and Generation to see which company operates in each governorate. Click a governorate for its company profile.

Iraq — Company Coverage Map

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Coverage note: Map covers federal Iraq only — Kurdistan Region (KRI) governorates are excluded. Transmission companies cover the same four regions as generation. Click any governorate to see which state company operates there.

Generation Fleet at a Glance

Iraq's generating fleet totals 38,287 MW of installed capacity across 681 units. Actual average output in 2024 was 18,856 MW — a system utilisation rate of ~49%, reflecting fuel constraints, maintenance backlogs, and grid limitations.

Plant Type Units Installed Cap. (MW) Avg. Output 2024 (MW) Production 2024 (GWh) Share %
Steam (Thermal) 27 7,245 3,642 31,993 19%
Gas (Open & Combined Cycle) 200 16,543 6,632 58,257 35%
Hydro 29 1,864 397 3,486 2%
Diesel (incl. Hyundai) 363 1,957 331 2,910 2%
MoE Domestic Total 619 27,609 11,002 96,645 58%
IPP / Investment Plants 53 10,678 7,172 59,723 36%
Imports (Iran + Kurdistan) 1,667 14,649 6%
System Total 681+ 38,287 18,856 165,630 100%

Source: Iraqi Ministry of Electricity — Annual Statistical Report 2024

Iraq's Chronic Supply-Demand Gap

Iraq needs roughly 38,885 MW of dispatchable power to meet demand. The system currently delivers only 19,868 MW — a shortfall of nearly 49%. Understanding what drives the gap is essential for any participant in the sector.

38,885 MW
Total Demand Required

Peak demand across all 15 federal governorates in 2024. Grows ~5% annually as population and urbanisation accelerate.

19,868 MW
Average Power Supplied

Power actually delivered to distribution networks in 2024, inclusive of imports and IPP output.

~19,000 MW
Unmet Peak Demand

The gap that drives load-shedding (up to 12–16 h/day in summer). Biggest opportunity for IPP investors and EPC contractors.

Why the gap persists

01
Fuel supply constraints

Gas-fired plants run at ~40% utilisation due to insufficient domestic gas supply and flare-gas capture shortfalls.

02
Aging thermal fleet

Steam plants average >20 years old; unplanned outages are frequent. The Zubaidiya (Wasit) plant alone accounts for 40% of steam output.

03
Transmission bottlenecks

7.4% transmission losses and limited 400 kV interconnects constrain how much generated power actually reaches distribution.

04
Distribution losses & theft

System-wide technical and non-technical losses averaged 55%. Baghdad's distribution companies lose more power than they sell.

05
Below-cost tariffs

Residential rates start at 10 IQD/kWh (~$0.007) — among the world's lowest — limiting investment recovery and maintenance budgets.

06
Import dependency

Iraq imported 9.3 TWh from Iran and 9.3 TWh from Kurdistan Region in 2024 — politically sensitive supply that is periodically interrupted.

Electricity Tariff Structure (Current)

Iraq uses a progressive block tariff where the price per kWh rises with consumption. Industrial and agricultural rates are flat. Commercial and government rates are the highest, though still far below cost-reflective levels.

Residential
Progressive
Consumption (kWh/mo) Rate (IQD/kWh)
1 – 1,500 10
1,501 – 3,000 35
3,001 – 4,000 80
> 4,000 120
Lowest band ≈ $0.007/kWh. Below any cost-recovery threshold.
Commercial
Progressive
Consumption (kWh/mo) Rate (IQD/kWh)
1 – 1,000 60
1,001 – 2,000 80
> 2,000 120
Top band ≈ $0.082/kWh. Still well below true cost.
Industrial
Flat Rate
Consumption Rate (IQD/kWh)
All bands 60
Flat ≈ $0.041/kWh. Fixed for all industrial consumers.
Government & Agricultural
Flat Rate
Consumption Rate (IQD/kWh)
Government — all bands 120
Agricultural — all bands 60
Government rate is highest at ≈ $0.082/kWh.

Source: Iraqi Ministry of Electricity — Annual Statistical Report 2024, Section on Electricity Tariffs

Licensed Data Access

Need the Full Dataset?

IEM compiles, translates, and structures Iraq's Ministry of Electricity annual reports into clean, analyst-ready spreadsheets covering all 73 domestic plants, 15 federal governorate distribution networks, tariff tables, fuel consumption, and the full 2010–2024 time series.

  • Plant-level generation & capacity data (2024)
  • Governorate demand, supply & loss metrics
  • Fuel consumption by plant type (gas, oil, diesel)
  • Revenue collection & consumer count by tariff class
  • Excel & CSV exports, updated annually

Iraq Electricity Flow

How Iraq's fuel inputs are converted into electricity and distributed to end-use sectors. Node width is proportional to energy volume (TWh).

Source: Iraqi Ministry of Electricity Annual Reports

Electricity Generation by Source

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Source: Iraqi Ministry of Electricity Annual Reports

Supplied Power vs Needed Power

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Supplied Power
Needed Power
Unmet Power (Deficit)

Source: Iraqi Ministry of Electricity Annual Reports