Manitoba Hydro Privatization Debate centers on subsidiaries, Crown corporation governance, clean energy priorities, and electricity rates, as board terms shift oversight and transparency, sparking concerns about sell-offs and government control.
Key Points
A dispute over Hydro's governance, subsidiaries, electricity rates, and clean energy amid fears of partial privatization.
✅ Rewritten terms allow subsidiaries and shift board duties.
✅ Low rates and clean energy mandates softened in guidance.
✅ Govt cites Hydro Act; NDP warns of sell-off risks.
The board of Manitoba Hydro is being reminded it can divvy up some of the utility's work to subsidiaries — which the NDP is decrying as a step toward privatization.
A sentence seemingly granting the board permission to create subsidiaries was included in the board's new terms of reference, which the NDP raised during question period Wednesday.
The document also eliminated references asking Manitoba Hydro to keep electricity rates low, even as rate hike hearings proceed, and supply power in an environmentally-friendly fashion.
NDP raises spectre of Manitoba Hydro's privatization with new CEO "They're essentially taking the heart out of Manitoba Hydro," NDP leader Wab Kinew said.
Cheap, clean energy is the basis by which the Crown corporation was formed, even as scaled-back rate increases are planned for next year, he said.
"That's the whole reason we created this utility in the first place."
Another addition to the board's guidelines include stating the corporation is responsible to the government minister, who must be "proactively informed" when significant issues arise.
The provincial government, however, says the rewritten terms of reference was the directive of the Manitoba Hydro board and not itself.
CBC's requests to the government for an interview were directed to Manitoba Hydro.
In an interview, Manitoba Hydro spokesperson Scott Powell said the energy utility has undergone no legislative changes, and is still governed by the Manitoba Hydro Act.
The terms of reference were altered to align the board's duties with the new act overseeing Crown corporations, Powell said.
"Whether you have one or two words different in the terms of reference, the essence of the company hasn't changed."
While the new terms of reference no longer instructs the corporation to ensure an "environmentally responsible supply of energy for Manitobans," it encourages the board to "promote economy and efficiency in all phases of power generation and distribution."
On the cost to ratepayers, the updated directions asks the utility to deliver "safe, reliable energy services at a fair price," a standard clarified by a recent appeal court ruling on First Nations rates, but the board is not specifically instructed with keeping electricity rates low.
Kinew contends the added sentence on subsidiaries permits Hydro to be broken off and sold for parts, although the terms of reference does not specify if any subsidiary would be wholly owned by Hydro or contracted to a private company.
Powell said Manitoba Hydro has been permitted to create subsidiaries since 1997, and nothing has changed since.
Kinew warned about Hydro's privatization last week when Jay Grewal was announced as Hydro's incoming CEO and president.
She was employed with B.C. Hydro when then-premier Gordon Campbell — hired by the Manitoba government to investigate costly overruns on two electricity megaprojects — sold off segments of the utility.
She then became managing director of Accenture, a global management consulting firm, which acquired several B.C. Hydro departments.
During question period Wednesday, Pallister disputed that Manitoba Hydro is bound to be sold.
He slammed the NDP's "Americanization strategy" of producing more electricity than it is capable of selling, which has saddled ratepayers with billions in debt and prompted proposed 2.5% annual increases in coming years.
The makeup of the Hydro board has undergone a complete turnover in under a year, a contrast to Ontario's Hydro One shakeup vow during that period.
Nine of the 10 members resigned en masse this March over an impasse with the Pallister government. The lone holdover, Cliff Graydon, was dismissed from his post last month after the Progressive Conservatives removed him from caucus.
Electricity Grid Flow Prediction leverages big data, machine learning, and weather analytics to forecast power flows across smart grids, enhancing reliability, reducing blackouts and curtailment, and optimizing renewable integration under EU Horizon 2020 innovation.
Key Points
Short-term forecasting of power flows using big data, weather inputs, and machine learning to stabilize smart grids.
✅ Uses big data, weather, and ML for 6-hour forecasts
✅ Improves reliability, cuts blackouts and energy waste
✅ Supports smart grids, renewables, and grid balancing
Three European prediction specialists have won prizes worth €2 million for developing the most accurate predictions of electricity flow through a grid
The three winners of the Big Data Technologies Horizon Prize received their awards at a ceremony on 12th November in Austria.
The first prize of €1.2 million went to Professor José Vilar from Spain, while Belgians Sofie Verrewaere and Yann-Aël Le Borgne came in joint second place and won €400,000 each.
The challenge was open to individuals groups and organisations from countries taking part in the EU’s research and innovation programme, Horizon 2020.
Carlos Moedas, Commissioner for Research, Science and Innovation, said: “Energy is one of the crucial sectors that are being transformed by the digital grid worldwide.
“This Prize is a good example of how we support a positive transformation through the EU’s research and innovation programme, Horizon 2020.
“For the future, we have designed our next programme, Horizon Europe, to put even more emphasis on the merger of the physical and digital worlds across sectors such as energy, transport and health.”
The challenge for the applicants was to create AI-driven software that could predict the likely flow of electricity through a grid taking into account a number of factors including the weather and the generation source (i.e. wind turbines, solar cells, etc).
Using a large quantity of data from electricity grids, EU smart meters, combined with additional data such as weather conditions, applicants had to develop software that could predict the flow of energy through the grid over a six-hour period.
Commissioner for Digital Economy and Society Mariya Gabriel said: “The wide range of possible applications of these winning submissions could bring tangible benefits to all European citizens, including efforts to tackle climate change with machine learning across sectors.”
The decision to focus on energy grids for this particular prize was driven by a clear market need, including expanding HVDC technology capabilities.
Today’s energy is produced at millions of interconnected and dispersed unpredictable sites such as wind turbines, solar cells, etc., so it is harder to ensure that electricity supply matches the demand at all times.
This complexity means that huge amounts of data are produced at the energy generation sites, in the grid and at the place where the energy is consumed.
Being able to make accurate, short-term predictions about power grid traffic is therefore vital to reduce the risks of blackouts or, by enabling utilities to use AI for energy savings, limit waste of energy.
Reliable predictions can also be used in fields such as biology and healthcare. The predictions can help to diagnose and cure diseases as well as to allocate resources where they are most needed.
Ultimately, the winning ideas are set to be picked up by the energy sector in the hopes of creating smarter electricity infrastructure, more economic and more reliable power grids.
EU Electrification Strategy 2050 outlines shifting transport, buildings, and industry to clean power, accelerating EV adoption, heat pumps, and direct electrification to meet targets, reduce emissions, and replace fossil fuels with renewables and low-carbon grids.
Key Points
EU plan to cut emissions 95% by 2050 by electrifying transport, buildings and industry with clean power.
✅ 60% of final energy from electricity by 2050
✅ EVs dominate transport; up to 63% electric share
✅ Heat pumps electrify buildings; industry to 50% direct
The European Union has one of the most ambitious carbon emission reduction goals under the global Paris Agreement on climate change – a 95% reduction by 2050.
It seems that everyone has an idea for how to get there. Some are pushing nuclear energy. Others are pushing for a complete phase-out of fossil fuels and a switch to renewables.
Today the European electricity industry came out with their own plan, amid expectations of greater electricity price volatility in Europe in the coming years. A study published today by Eurelectric, the trade body of the European power sector, concludes that the 2050 goal will not be possible without a major shift to electricity in transport, buildings and industry.
The study finds that for the EU to reach its 95% emissions reduction target, electricity needs to cover at least 60 percent of final energy consumption by 2050. This would require a 1.5 percent year-on-year growth of EU electricity use, with evidence that EVs could raise electricity demand significantly in other markets, while at the same time reducing the EU’s overall energy consumption by 1.3 percent per year.
#google#
Transport is one of the areas where electrification can deliver the most benefit, because an electric car causes far less carbon emissions than a conventional vehicle, with e-mobility emerging as a key driver of electricity demand even if that electricity is generated in a fossil fuel power plant.
In the most ambitious scenario presented by the study, up to 63 percent of total final energy consumption in transport will be electric by 2050, and some analyses suggest that mass adoption of electric cars could occur much sooner, further accelerating progress.
Building have big potential as well, according to the study, with 45 to 63 percent of buildings energy consumption could be electric in 2050 by converting to electric heat pumps. Industrial processes could technically be electrified with up to 50 percent direct electrification in 2050, according to the study. The relative competitiveness of electricity against other carbon-neutral fuels will be the critical driver for this shift, but grid carbon intensity differs across markets, such as where fossil fuels still supply a notable share of generation.
Manitoba NDP Geothermal Conversion Program offers full-cost heat pump installation for 5,000 homes, lowering electricity bills, funding contractor training and rebates, and cutting greenhouse gas emissions via geothermal energy administered by Efficiency Manitoba.
Key Points
A plan funding 5,000 home heat pump conversions to cut electricity bills, reduce emissions, and expand installer capacity.
✅ Covers equipment and installation for 5,000 homes
✅ Cuts electricity bills up to 50% vs electric heat
✅ Administered by Efficiency Manitoba; trains contractors
An NDP government would cover the entire cost for 5,000 families to switch their homes to geothermal energy, New Democrats have promised.
If elected on Oct. 3, the NDP will pay for the equipment and installation of new geothermal systems at 5,000 homes, St. James candidate Adrien Sala announced outside a St. Boniface home that previously made the switch.
The homes that switch to geothermal energy could save as much as 50 per cent on their electricity bills, Sala said.
"It will save you money, it will grow our economy and it will reduce greenhouse gas emissions. And I think we can safely call that a win, win, win," Sala said.
Geothermal energy is derived from heat that is generated within the Earth.
The NDP said each conversion to geothermal heating and cooling would cost an estimated $26,000, and comes as new turbine investments advance in Manitoba, and it would take four years to complete all 5,000 conversions.
The program would be administered through Efficiency Manitoba, the Crown corporation responsible for conserving energy, as Manitoba Hydro's new president navigates changes at the utility. The NDP estimates it will cost $32.5 million annually over the four years, at a time of red ink at Manitoba Hydro as new power generation needs loom. Some of that money would support the training of more contractors who could install geothermal systems.
Subsidies get low pickup: NDP Sala wouldn't say Wednesday which homeowners or types of homes would be eligible.
He said the NDP's plan would be a first in Canada, even as Ontario's energy plan seeks to address growing demand elsewhere.
"What we've seen elsewhere is where other jurisdictions have used a strict subsidy model, where they try to reduce the cost of geothermal, and while Ontario reviews a halt to natural gas generation to cut emissions, approaches differ across provinces. We really haven't seen a lot of uptake in those other jurisdictions," Sala said.
"This is an attempt at dealing with one of those key barriers for homeowners."
Efficiency Manitoba runs a subsidy program for geothermal energy through ground source heat pumps, supporting using more electricity for heat across the province, valued at up to $2.50 per square foot. It is estimated a 1,600 sq. ft. home switching from an electric furnace to geothermal will receive a rebate of around $4,000 and save around $900 annually on their electricity bills, the Crown corporation said.anitoba homeProgressive Conservative spokesperson Shannon Martin questioned how NDP Leader Wab Kinew can afford his party's numerous election promises.
"He will have no choice but to raise taxes, and history shows the NDP will raise them all," said Martin, the McPhillips MLA who isn't seeking re-election.
Wednesday's announcement was the first for the NDP in which Kinew wasn't present. The party has criticized the Progressive Conservatives for leader Heather Stefanson showing up for only a few announcements a week.
Sala said Kinew was busy preparing for the debate later in the day.
"This stuff is near and dear to Wab's heart, and frankly, I think he's probably hurting that he's not here with us right now."
Boeing 787 More-Electric Architecture replaces pneumatics with bleedless pressurization, VFSG starter-generators, electric brakes, and heated wing anti-ice, leveraging APU, RAT, batteries, and airport ground power for efficient, redundant electrical power distribution.
Key Points
An integrated, bleedless electrical system powering start, pressurization, brakes, and anti-ice via VFSGs, APU and RAT.
✅ VFSGs start engines, then generate 235Vac variable-frequency power
✅ Bleedless pressurization, electric anti-ice improve fuel efficiency
✅ Electric brakes cut hydraulic weight and simplify maintenance
The 787 Dreamliner is different to most commercial aircraft flying the skies today. On the surface it may seem pretty similar to the likes of the 777 and A350, but get under the skin and it’s a whole different aircraft.
When Boeing designed the 787, in order to make it as fuel efficient as possible, it had to completely shake up the way some of the normal aircraft systems operated. Traditionally, systems such as the pressurization, engine start and wing anti-ice were powered by pneumatics. The wheel brakes were powered by the hydraulics. These essential systems required a lot of physical architecture and with that comes weight and maintenance. This got engineers thinking.
What if the brakes didn’t need the hydraulics? What if the engines could be started without the pneumatic system? What if the pressurisation system didn’t need bleed air from the engines? Imagine if all these systems could be powered electrically… so that’s what they did.
Power sources
The 787 uses a lot of electricity. Therefore, to keep up with the demand, it has a number of sources of power, much as grid operators track supply on the GB energy dashboard to balance loads. Depending on whether the aircraft is on the ground with its engines off or in the air with both engines running, different combinations of the power sources are used.
Engine starter/generators
The main source of power comes from four 235Vac variable frequency engine starter/generators (VFSGs). There are two of these in each engine. These function as electrically powered starter motors for the engine start, and once the engine is running, then act as engine driven generators.
The generators in the left engine are designated as L1 and L2, the two in the right engine are R1 and R2. They are connected to their respective engine gearbox to generate electrical power directly proportional to the engine speed. With the engines running, the generators provide electrical power to all the aircraft systems.
APU starter/generators
In the tail of most commercial aircraft sits a small engine, the Auxiliary Power Unit (APU). While this does not provide any power for aircraft propulsion, it does provide electrics for when the engines are not running.
The APU of the 787 has the same generators as each of the engines — two 235Vac VFSGs, designated L and R. They act as starter motors to get the APU going and once running, then act as generators. The power generated is once again directly proportional to the APU speed.
The APU not only provides power to the aircraft on the ground when the engines are switched off, but it can also provide power in flight should there be a problem with one of the engine generators.
Battery power
The aircraft has one main battery and one APU battery. The latter is quite basic, providing power to start the APU and for some of the external aircraft lighting.
The main battery is there to power the aircraft up when everything has been switched off and also in cases of extreme electrical failure in flight, and in the grid context, alternatives such as gravity power storage are being explored for long-duration resilience. It provides power to start the APU, acts as a back-up for the brakes and also feeds the captain’s flight instruments until the Ram Air Turbine deploys.
Ram air turbine (RAT) generator
When you need this, you’re really not having a great day. The RAT is a small propeller which automatically drops out of the underside of the aircraft in the event of a double engine failure (or when all three hydraulics system pressures are low). It can also be deployed manually by pressing a switch in the flight deck.
Once deployed into the airflow, the RAT spins up and turns the RAT generator. This provides enough electrical power to operate the captain’s flight instruments and other essentials items for communication, navigation and flight controls.
External power
Using the APU on the ground for electrics is fine, but they do tend to be quite noisy. Not great for airports wishing to keep their noise footprint down. To enable aircraft to be powered without the APU, most big airports will have a ground power system drawing from national grids, including output from facilities such as Barakah Unit 1 as part of the mix. Large cables from the airport power supply connect 115Vac to the aircraft and allow pilots to shut down the APU. This not only keeps the noise down but also saves on the fuel which the APU would use.
The 787 has three external power inputs — two at the front and one at the rear. The forward system is used to power systems required for ground operations such as lighting, cargo door operation and some cabin systems. If only one forward power source is connected, only very limited functions will be available.
The aft external power is only used when the ground power is required for engine start.
Circuit breakers
Most flight decks you visit will have the back wall covered in circuit breakers — CBs. If there is a problem with a system, the circuit breaker may “pop” to preserve the aircraft electrical system. If a particular system is not working, part of the engineers procedure may require them to pull and “collar” a CB — placing a small ring around the CB to stop it from being pushed back in. However, on the 787 there are no physical circuit breakers. You’ve guessed it, they’re electric.
Within the Multi Function Display screen is the Circuit Breaker Indication and Control (CBIC). From here, engineers and pilots are able to access all the “CBs” which would normally be on the back wall of the flight deck. If an operational procedure requires it, engineers are able to electrically pull and collar a CB giving the same result as a conventional CB.
Not only does this mean that the there are no physical CBs which may need replacing, it also creates space behind the flight deck which can be utilised for the galley area and cabin.
A normal flight
While it’s useful to have all these systems, they are never all used at the same time, and, as the power sector’s COVID-19 mitigation strategies showed, resilience planning matters across operations. Depending on the stage of the flight, different power sources will be used, sometimes in conjunction with others, to supply the required power.
On the ground
When we arrive at the aircraft, more often than not the aircraft is plugged into the external power with the APU off. Electricity is the blood of the 787 and it doesn’t like to be without a good supply constantly pumping through its system, and, as seen in NYC electric rhythms during COVID-19, demand patterns can shift quickly. Ground staff will connect two forward external power sources, as this enables us to operate the maximum number of systems as we prepare the aircraft for departure.
Whilst connected to the external source, there is not enough power to run the air conditioning system. As a result, whilst the APU is off, air conditioning is provided by Preconditioned Air (PCA) units on the ground. These connect to the aircraft by a pipe and pump cool air into the cabin to keep the temperature at a comfortable level.
APU start
As we near departure time, we need to start making some changes to the configuration of the electrical system. Before we can push back , the external power needs to be disconnected — the airports don’t take too kindly to us taking their cables with us — and since that supply ultimately comes from the grid, projects like the Bruce Power upgrade increase available capacity during peaks, but we need to generate our own power before we start the engines so to do this, we use the APU.
The APU, like any engine, takes a little time to start up, around 90 seconds or so. If you remember from before, the external power only supplies 115Vac whereas the two VFSGs in the APU each provide 235Vac. As a result, as soon as the APU is running, it automatically takes over the running of the electrical systems. The ground staff are then clear to disconnect the ground power.
If you read my article on how the 787 is pressurised, you’ll know that it’s powered by the electrical system. As soon as the APU is supplying the electricity, there is enough power to run the aircraft air conditioning. The PCA can then be removed.
Engine start
Once all doors and hatches are closed, external cables and pipes have been removed and the APU is running, we’re ready to push back from the gate and start our engines. Both engines are normally started at the same time, unless the outside air temperature is below 5°C.
On other aircraft types, the engines require high pressure air from the APU to turn the starter in the engine. This requires a lot of power from the APU and is also quite noisy. On the 787, the engine start is entirely electrical.
Power is drawn from the APU and feeds the VFSGs in the engines. If you remember from earlier, these fist act as starter motors. The starter motor starts the turn the turbines in the middle of the engine. These in turn start to turn the forward stages of the engine. Once there is enough airflow through the engine, and the fuel is igniting, there is enough energy to continue running itself.
After start
Once the engine is running, the VFSGs stop acting as starter motors and revert to acting as generators. As these generators are the preferred power source, they automatically take over the running of the electrical systems from the APU, which can then be switched off. The aircraft is now in the desired configuration for flight, with the 4 VFSGs in both engines providing all the power the aircraft needs.
As the aircraft moves away towards the runway, another electrically powered system is used — the brakes. On other aircraft types, the brakes are powered by the hydraulics system. This requires extra pipe work and the associated weight that goes with that. Hydraulically powered brake units can also be time consuming to replace.
By having electric brakes, the 787 is able to reduce the weight of the hydraulics system and it also makes it easier to change brake units. “Plug in and play” brakes are far quicker to change, keeping maintenance costs down and reducing flight delays.
In-flight
Another system which is powered electrically on the 787 is the anti-ice system. As aircraft fly though clouds in cold temperatures, ice can build up along the leading edge of the wing. As this reduces the efficiency of the the wing, we need to get rid of this.
Other aircraft types use hot air from the engines to melt it. On the 787, we have electrically powered pads along the leading edge which heat up to melt the ice.
Not only does this keep more power in the engines, but it also reduces the drag created as the hot air leaves the structure of the wing. A double win for fuel savings.
Once on the ground at the destination, it’s time to start thinking about the electrical configuration again. As we make our way to the gate, we start the APU in preparation for the engine shut down. However, because the engine generators have a high priority than the APU generators, the APU does not automatically take over. Instead, an indication on the EICAS shows APU RUNNING, to inform us that the APU is ready to take the electrical load.
Shutdown
With the park brake set, it’s time to shut the engines down. A final check that the APU is indeed running is made before moving the engine control switches to shut off. Plunging the cabin into darkness isn’t a smooth move. As the engines are shut down, the APU automatically takes over the power supply for the aircraft. Once the ground staff have connected the external power, we then have the option to also shut down the APU.
However, before doing this, we consider the cabin environment. If there is no PCA available and it’s hot outside, without the APU the cabin temperature will rise pretty quickly. In situations like this we’ll wait until all the passengers are off the aircraft until we shut down the APU.
Once on external power, the full flight cycle is complete. The aircraft can now be cleaned and catered, ready for the next crew to take over.
Bottom line
Electricity is a fundamental part of operating the 787. Even when there are no passengers on board, some power is required to keep the systems running, ready for the arrival of the next crew. As we prepare the aircraft for departure and start the engines, various methods of powering the aircraft are used.
The aircraft has six electrical generators, of which only four are used in normal flights. Should one fail, there are back-ups available. Should these back-ups fail, there are back-ups for the back-ups in the form of the battery. Should this back-up fail, there is yet another layer of contingency in the form of the RAT. A highly unlikely event.
The 787 was built around improving efficiency and lowering carbon emissions whilst ensuring unrivalled levels safety, and, in the wider energy landscape, perspectives like nuclear beyond electricity highlight complementary paths to decarbonization — a mission it’s able to achieve on hundreds of flights every single day.
Hydro One Avista takeover rejection signals Washington regulators blocking a utility acquisition over governance risk, EPS dilution, and balance sheet impact, as investors applaud share price gains and a potential US$103M break fee.
Key Points
A regulator-led block of Hydro One's Avista bid, citing EPS dilution, balance sheet risk, and governance concerns.
✅ Washington denies approval; Idaho, Oregon decisions pending.
✅ Shares rise 5.7%; US$103M break fee if deal collapses.
Opposition politicians may not like it but investors are applauding the rejection of Hydro One Ltd.'s $6.7-billion Avista takeover of U.S.-based utility Avista Corp.
Shares in the power company controlled by the Ontario government, which has also proposed a bill redesign to simplify statements, closed at $21.53, up $1.16 or 5.7 per cent, on the Toronto Stock Exchange on Thursday.
On Wednesday, Washington State regulators said they would not allow Ontario's largest utility to buy Avista over concerns about political risk that the provincial government, which owns 47 per cent of Hydro One's shares, might meddle in Avista's operations.
Financial analysts had predicted investors would welcome the news because the deal, announced in July 2017, would have eroded earnings per share and weakened Hydro One's balance sheet.
"The Washington regulator's denial of Avista is a positive development for the shares, in our opinion," said analyst Ben Pham of BMO Capital Markets in a report on Wednesday.
"While this may sound odd, we note that the Avista deal is expected to be EPS dilutive and result in a weaker balance sheet for (Hydro One). Not acquiring Avista and refocusing its attention on its core Ontario franchise ... along with related interprovincial arrangements such as the Ontario-Quebec electricity deal under discussion would likely be viewed positively if the deal ultimately breaks."
Decisions are yet to come from Idaho and Oregon state regulators, but Washington was probably the most important as the state contains customers making up about 60 per cent of Avista's rate base, Pham said.
He pointed out that a US$103-million break fee is to be paid to Avista if the deal collapses due to a failure to obtain regulatory approval.
CIBC analyst Robert Catellier raised his 12-month Hydro One target price by 25 cents and said many shareholders will feel "relieved" that the deal had failed.
He warned that the company's earnings power could deteriorate as the province seeks to reduce power bills by 12 per cent, despite an Ontario-Quebec hydro deal that may not lower costs.
Iran-Iraq Power Grid Deals reinforce electricity and natural gas ties, upgrading transmission in Karbala and Najaf, repairing transformers, easing sanctions bottlenecks, and weighing GCC interconnection to diversify supply and reduce distribution losses across Iraq.
Key Points
Agreements to rehabilitate Iraq's grid, cut losses, and secure power via Iranian gas, electricity, and upgrades.
✅ Reduce distribution losses in Karbala and Najaf
✅ Repair and replace damaged distribution transformers
✅ Coordinate payments to TAVANIR amid US sanctions
Iran and Iraq have finalized two deals to rehabilitate and develop the power grid of Iraq, while Iran is upgrading thermal plants to combined cycle at home to save energy, IRNA cited the Iranian Energy Minister Reza Ardakanian.
Ardakanian met his Iraqi counterpart Majid Mahdi Hantoush in Tehran on Tuesday evening for talks on further energy cooperation on the sidelines of Prime Minister Mustafa al-Kadhimi’s trip to the Islamic Republic on his first foreign visit.
“It was decided that the contracts related to reducing losses on the electricity distribution network in the provinces of Karbala and Najaf, as well as the contract for repairing Iraq’s distribution transformers would be finalized and signed,” the Iranian minister said.
Iraq relies on Iran for natural gas that generates as much as 45 percent of its electricity, with Iran supplying 40% of Iraq’s power according to sector reports. Iran transmits another 1,200 MW directly, and has regional power hub plans as well, making itself an indispensable energy source for its Arab neighbor, but the United States is trying to pry Baghdad away from Tehran’s orbit.
The US has been enlisting its companies and allies such as Saudi Arabia to replace Iran as Iraq’s source of energy.
Iran’s money from exports of gas and electricity has accumulated in bank accounts in Iraq, because US sanctions are preventing Tehran from repatriating it.
In January, an official said the sanctions were giving Iran a run for five billion dollars, “sedimenting” at the Central Bank of Iraq, because Tehran could not access it.
Ardakanian said the issue was brought up in the discussions on Tuesday and it was agreed that “the payment of part of TAVANIR (Iran Power Generation and Transmission Company)’s claims will start from the end of July”.
The US administration is pushing for a deal between Washington, Baghdad and six Persian Gulf states to connect Iraq’s nationwide power grid to that of the Persian Gulf Cooperation Council, while Uzbekistan looks to export power to Afghanistan as regional linkages expand.
The US State Department said in a statement last Thursday that the six countries that make up the (Persian) Gulf Cooperation Council Interconnection Authority (GCCIA) — Saudi Arabia, Kuwait, Bahrain, Qatar, Oman and the UAE — had affirmed their shared support for the project to supply electricity to Iraq.
Iraq needs more than 23,000 MW of electricity to meet its domestic demand, and is exploring nuclear power plans to tackle shortages, but years of war following the 2003 US invasion have left its power infrastructure in tatters and a deficit of some 7,000 MW.
In the past, officials in Baghdad have said there is no easy substitute to imports from Iran because it will take years to adequately build up Iraq’s energy infrastructure, and meeting summer electricity needs remains a persistent challenge.
They have said American demand acknowledges neither Iraq’s energy needs nor the complex relations between Baghdad and Tehran.
In addition to natural gas and electricity, Iraq imports a wide range of goods from Iran including food, agricultural products, home appliances, and air conditioners.
On Tuesday, the Iraqi prime minister said during a joint news conference with Iranian President Hassan Rouhani that the purpose of his trip to Tehran was to strengthen historical ties between the two countries, especially in light of the challenges they faced as a result of the coronavirus outbreak and the fall of oil prices.
“In the face of such challenges, we need coordination between the two countries in a way that serves the interests of Iran and Iraq.”
Both Iran and Iraq, Kadhimi said, suffer from economic problems, adding the two countries need comprehensive and inclusive cooperation to overcome them.
Kadhimi said Iran-Iraq relations are not merely due to the geographical location of the two countries and their 1,450-km border, adding the ties are based on religion and culture and rooted in history.
“I am reiterating to my brothers in the Islamic Republic of Iran that the Iraqi nation is eager to have excellent relations with the Islamic Republic of Iran based on the principle of non-interference in the internal affairs of the two countries.”
Kadhimi said Iran and Iraq fought against terrorism and Takfiri groups together, and the Islamic Republic of Iran was one of the first countries to stand by Iraq.
“We will not forget this. That is why Iraq has stood with Iran to help it overcome economic challenges and turned to a big market for trade with Iran,” he said.
“We seek stability in Iraq and our philosophy and view of Iran is that we consider Iran a stable, strong, prosperous and progressive country, and this fact is in the interest of Iraq and the territorial integrity of the region,” he added.
According to Kadhimi, the two sides discussed implementing agreements between them, including connecting their railway through Khorramshahr in Iran and Basra in Iraq, adding he was very confident the agreements would be implemented soon.
Iraq’s delegation included the ministers of foreign affairs, finance, health, and planning, as well as Kadhimi’s national security adviser, some of whom also met their Iranian counterparts.
Last year, Iran’s exports to Iraq amounted to nearly $9 billion, IRNA reported. It said the two nations will discuss increasing that amount to $20 billion.
“The two governments’ will is to expand bilateral trade to $20 billion,” Rouhani said after an hour-long meeting with the Iraqi prime minister.
Whether you would prefer Live Online or In-Person
instruction, our electrical training courses can be
tailored to meet your company's specific requirements
and delivered to your employees in one location or at
various locations.
