Iraq Economy: Light At the End of the Tunnel Part II

Baghdad receives approximately 6.5 hours (often less) of electricity per day while surrounding areas are receiving between 12 and 16 hours. Taking a page out of Saddam's political and economic use of the electrical power, many provinces have taken their power plants off the grid and reserved that energy for their own use. This has led to an increase in reconstruction in many of these areas, as well as a surge in political power for local leaders in the provinces. It has also allowed these provinces to use electrical power for political leverage against the Maliki government.

Today, average electrical output is meeting or beating the pre-war production, though 2007 was still under pre-war average generation by approximately 700 mega watts. Meanwhile average and peak demand has increased by over 1000MW.

The goal was to have average production exceed pre-war generation by 1500 MW up to 6,000 MW by the end of 2007. Production topped out at appx 4,800 MW. Over 2,000 MW are currently provided by owner/operators of private generators.

To meet these demands the USACE, the Ministry of Electricity, and various government and private sector organizations have been working to refurbish many of Iraq's existing plants, as well as seeking partnerships to build new plants to meet the demands.

Recently Minister Kareem Waheed told Aswat al-Iraq, the Ministry of Electricity has called for foreign investors to begin building private electrical plants in Iraq.. He cited the slowness of private investment from ongoing security fears. He believes that security is strong enough in many provinces to begin these projects. He states:

"Iraqi companies are only rehabilitating the power grid, but not rebuilding it,"

Many engineers have left the country, and new technology has not been taught or managed by existing companies and engineers. They do have expertise in managing some of the existing plants. But, even in these plants, USACE and other organizations have been teaching the engineers how to manage the plant, do regular maintenance, and schedule outages that are less damaging to the overall performance of the systems.

The Minister of Iraq went on to announce that Iraq will be tendering six new projects in 2008 to improve electricity. Five in Baghdad and one in al-Maseeb, Babel province. This will allow better electrical output to Baghdad. Other projects include connecting Baghdad to external power grids from Jordan, Syria, Saudi Arabia and Iran.

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In a savvy political and economic move, the Iranians are planning to build a thermal electricity plant in Najaf, one of Iraq's Shia holy cities where hundreds of thousands of Shia's travel for yearly festivals and holy days. That includes many Iranian Shia. The project is estimated at 150 million Euros and will provide electricity to Najaf and Karbala, though it won't alleviate the 400 MW deficit in the entire Najaf province. It will provide 320 MW for those two cities. The ground is prepared, but the MoE, Waheed, went to Iran last week to resolve disputes between Iran and Iraq over the project details.

According to the latest reports from USACE, they have overseen almost 2,000 projects for electrical capacity building in Iraq. Most have been accomplished by Iraqi contractors and engineers with the USACE providing assistance, guidance and funds. The EIA indicates that the United States has invested over $4.4 billion in the development of electrical production in Iraq. The responsibility for further development was handed to the Iraqi government and ministries in September 2007, though the USACE continued to manage several projects to completion and works in conjunction with the MoE to contract for repairs, training and other development.

The USACE, with cooperation of the MoE, completed a substation in Maysan province that will provide 400 kilovolts of electricity. It was connected to the main grid on March 1. The project was a joint venture between ABB Sweden and a local Iraqi contractor. It employed over 500 local workers for over a year.

The USACE is working in conjunction with the Ministry of Electricity and the Ministry of Water Resources to improve communications and develop a plan to improve electrical generation from the Haditha Dam. The current emphasis at the dam has been on irrigation and water management. The electrical management team has had difficulty getting attention to their problems and requirements for improving electrical production. The USACE has been facilitating talks between the groups and working towards budget allocations that will bring more stable electricity to over 160,000 people in al Anbar. The electrical management team also meets every two weeks with the Governor's Electricity Committee.

On January 29, 2008, construction began on an 11 kV electrical distribution network in Diwaniyah, the capital of Qadisiyah province. The project will cost 3.5 million and infuse approximately $500,000 into the local economy during the course of the project.

Work includes replacing the existing network, laying a new underground cable, and installing new indoor 630 Amp transformers, she said.

The USACE was also awarded a "$1.54 million project to build, supply, install, test and commission a double 33kV electrical feeder line of the Al Nasiriyah powerline, according to Taha Jabber, an Iraqi engineer with USACE Gulf Region South district."

One of the many problems maintaining the steady supply of electricity and managing its delivery has been the inability of the MoE to monitor and control the operations of so many electrical plants on the grid. When a plant goes down due to maintenance or lack of fuel or sabotage, it automatically puts a strain on the rest of the system and major unscheduled blackouts occur. The USACE has worked with the MoE and private contractors to install a remote monitoring system (RMS). The system will also allow the ministry to better analyze performance and insure maintenance is done timely to prevent critical failures.

The Baghdad power grid is currently the weakest link in the power system. Not only have various provincial power plants gone off the national grid, but insurgent attacks have and continue to keep regular power supply from reaching the nation's capital. To improve the situation, the MoE has instituted a program to harden and strengthen power stations and towers, as well as place some power lines under ground to reduce the chances of damage.

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In August 2007, the MoE reported that there were 17 high tension power lines going into Baghdad, but only two were operational. The MoE and contractors, with US forces and Iraqi police providing security, have been working to bring Baghdad back on line.

Arab Jabour power lines are nearly complete

BAGHDAD (March 10, 2008) – Reconstruction of three 132-kilovolt high-tension power line towers in the region of Arab Jabour are near completion.

Iraqi Ministry of Electricity employees began work on the towers March 1. Once complete, another link of the southern Baghdad power belt will be fixed.[snip]

Sgt. Rod Elrifai, a power generation specialist with 2-3 Brigade Troop Battalion, 2nd Brigade Combat Team, 3rd Infantry Division, said the belt is a series of 400-132 kv power lines and electrical stations which provide power to and encircle the capital city.

Iraqis rebuild power line towers in Sayafiyah

FOB KALSU, Iraq (Feb. 20, 2008) — With assistance from coalition troops and Iraqi security forces, ministry of electricity workers are rapidly reconstructing three high-tension power line towers in Sayafiyah, 25 kilometers south of Baghdad.

Soldiers of Troop A, 5th Squadron, 7th Cavalry Regiment, 1st Brigade Combat Team, 3rd Infantry Division, and members of an Iraqi police security detail are providing security for 130 workers from the MoE rebuilding the structures, which form part of Baghdad’s ‘power belt.’

“There is a 400 kilovolt distribution ring that goes around Baghdad and this (section) is the southern part of it,” said 1st Lt. Matthew Shoop, electrical projects engineer, 2-3 Brigade Troop Battalion, 2nd BCT, 3rd Inf. Div. [snip]

Hussein Lefta Mansoor, construction site manager for the MoE, initially told 2nd BCT leaders he and his workers could have the towers up in as few as 10 days. On day four of the operation, he cut the estimated completion time down to one week.

Shoop said once the towers are reconstructed and power lines put into place, the region could see a boost in their share of the power ration, which is metered out by the MoE

The surge in reconstruction was made possible by the troop surge in 2007. Since then, the MoE has been re-doubling its efforts to rehabilitate, reconnect and build anew Iraq's electrical grid that will help fuel private industry and, eventually, be a cornerstone for a peaceful, developing and resurgent economy.

[This is a three part series on electricity in Iraq based on information gathered for research to facilitate FbL's interview with Ambassador Reis from the US Embassy Baghdad. Additional Economic series may appear regarding Iraq's Oil Infrastructure, Water, Sewage and Banking. Also look for additional posts on other economy and reconstruction stories. To quote an unknown source in Glenn Zapotte's IEEE report (Institute of Electric and Electronic Engineers): "Never before has so vast a reconstruction program been attempted in the face of enemy fire or managed in the shadow of geopolitics."]