On April 9, 2025, Iraq signed a memorandum of understanding with GE Vernova, a subsidiary of General Electric, to develop natural gas power plants and produce 24,000 megawatts (MW) of electricity. The agreement is part of Iraq’s ongoing efforts to diversify its energy sources and reduce its dependency on Iranian gas, which has contributed to frequent electricity outages in the country.

The signing ceremony, attended by Prime Minister Mohammed Shia' Al Sudani, marks a significant step toward modernizing Iraq’s energy infrastructure. The project is touted as the largest and most advanced of its kind in Iraq's history, with financing opportunities from international banks.

The agreement with GE Vernova focuses on combined-cycle gas power plants, a key component in Iraq’s plan to increase electricity production to meet growing demand. The country’s current power generation capacity stands at 16,000 MW, far short of the 55,000 MW needed during peak consumption periods.

Additionally, Iraq has signed an agreement with UGT Renewables for a 3,000 MW solar energy project. This aligns with the government’s broader energy strategy to modernize the electrical grid and ensure a more stable supply for the nation’s 46 million residents.

As Iraq navigates its energy challenges, it seeks to balance its relationships with both the United States and Iran, while also attracting foreign investment in its energy sector.