Iraq signs deal with Alstom

Alstom Iraq Power MOU outlines upgrades to Basra oil-fired units and Najaf gas plant, adding megawatts, substations, and grid rehabilitation to curb blackouts, boost capacity, and stabilize the electricity network amid chronic energy shortages.

French utility company Alstom announced that it signed a memorandum of understanding with Iraq to develop the country's crumbling electricity grid.

Patrick Kron, chief executive officer at French company Alstom, in line with a recent electricity contract in Iraq, signed the MOU with the Iraqi oil ministry and Iraqi Prime Minister Nouri al-Maliki.

The measure includes work at three oil-fired units in the southern port city of Basra. Each facility could produce as much as 400 megawatts of energy, reflecting a power plant expansion trend across the grid.

A project in the holy city of Najaf involves the rehabilitation of a gas-fired power plant with 180 MW of installed capacity. Other work involves the supply of electrical substations scattered throughout the country.

Despite holding some of the largest oil and natural gas deposits in the world, parts of Iraq suffer from rolling blackouts, even as nuclear power plans are being explored to ease shortages.

Officials working in the energy sector of Iraq said the government wasn't allocating enough money to the energy grid, and recent Siemens and GE deals underscore how much more is needed to avert sweeping power outages.

Iraqi police in June opened fire on demonstrators protesting against power shortages in Basra, killing two in southern port city.

Residents in parts of Basra said they have about 6 hours of electricity each day, as a contract with GE aims to boost generation over time.

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