Iraq's electricity generation primarily depends on fossil fuels. In 2021, natural gas was the largest source at 57.3% of the total, followed by oil at 36.7%. Renewable energy, mainly from hydroelectric power, contributed 5.9%.^[1] As of 2023^[update], the 30 gigawatts (GW) of installed capacity cannot meet summer peak demand.^[2]

This article needs to be updated. (February 2020)

In 2021, the majority of Iraq's electricity consumption was attributed to the residential sector, which used 65.0% of the total. This was followed by the commercial and public services sector at 21.6%, and industrial activities at 11.2%. The smallest share was consumed by the agriculture and forestry sector, accounting for only 2.2%.^[1]

According to the United States Department of Energy officials, demand for electricity has been stimulated by a growing economy and a surge in consumer purchases of appliances and electronics.^{[obsolete source][3]} In addition, electricity is subsidized in Iraq, which leads to increased demand.^[2]

Due to a weak grid and institutional problems many consumers use small generators or rooftop solar panels.^[2]

Electricity entered Iraq for the first time in 1917 where the first electric machine was installed in "Khan Dala" building.^[4]

Prior to the Gulf War, the total installed generating capacity was 5,100 MW, which fell to about 2,300 MW after the Gulf War. Approximately 87% of the population had access to electricity.^[5] A combination of wars, sanctions, looting and vandalism has however, severely affected the entire power system infrastructure in Iraq.

During the 1991 Gulf War, the electricity system suffered severe damage. Several transmission lines were put out of service, electrical substations were damaged. While some of the damage of the 1991 war was repaired and about 4,500 MW of generating capacity was available in 1999 when Iraq reorganized its electricity sector. The sector was separated from the Ministry of Industry, and the Commission of Electricity (CoE) was established on June 21, 1999. About 4,500 MW of generating capacity became available by the end of 2002, power supply remained insufficient and unreliable. Programmed load shedding and unplanned power outages were frequent.^[6]

The 1990 installed capacity of 9,295 MW consisted of 120 power-generating units in various thermal, gas turbine and hydroelectric power stations. Approximately 70% of Iraq's installed power generating capacity was damaged or destroyed during the 1991 Gulf War. All major power stations were damaged and nearly 80% of the gas turbines units were affected. After 1991, only about 50 units were available, with a generation capacity of 2,325 MW. The construction work on three new large thermal power stations at Yousifiya, Al-Shemal and Al-Anbar were stopped, because of the ensuing sanctions.^[11]

As of June 2014, Iraq spent about US$27 billion between 2003 and 2012 to rehabilitate the power sector after decades of war and sanctions, but widespread corruption in the country has hindered development efforts and power outages continue.^[18] In 2005, the World Bank estimated that US$12 billion would be needed for near-term restoration, and the Ministry of Electricity estimated that US$35 billion would be necessary to rebuild the system fully.^[19]

• General Electric PPHM contract of US$3 Billion. Under the agreement, GE Energy will provide multi-fuel gas turbines capable of supplying 7,000 MW of electricity.^[20]
• Emergency Rehabilitation of Musayyib Power Station – Stage II, location Nationwide, Project cost US$33 million. Duration 24 months, Starting Date June 2005, Completion Date June 2009.^[21]
• Al Hartha power station, Basrah, a project will double the output of the Hartha station from 400 MW to 800 MW, the total cost of the project is estimated at US$150 million which is funded by World Bank.^[22]
• Dora power station; rehabilitation Unit 5 & 6 (steam turbine, 160 MW each) $90.8 million JO-03-037-08 by Bechtel, personnel assistance and training for MoE $80 million JO-04-503-03.^[23]
• Dukan and Darbandikhan emergency Hydro Power Project with cost US$37.5 million.^[24]
• In October 2010, it was announced that a Turkey energy company, Calik Enerji, has signed a contract, worth of US$445 million, with the Iraqi government to build a power generating station in Al Khairat, Karbala city in central Iraq.The generating capacity of the station amounts to 1,250 MW.^[25][26][27]
• In October 2010, Enka Insaat won a US$267.5 million deal to build a power plant and install six turbines in Ninawa Governorate in northern Iraq.^[26]
• In October 2010, MoE announced that Eastern Lights will install four turbines in an existing plant in Baghdad under a contract worth US$204.8 million.^[26]
• Iranian company Tavanir has built Al Sadr Power Plant and is currently expanding it to 640 MW. Iran also plans to build 2000 MW of installed capacity in Iraq and increase its export to Iraq to 1250 MW by summer 2012.^{[28][29][30][31]}

This section needs expansion. You can help by adding to it. (May 2023)

The IMF estimate that in 2020 less than half of supplied electricity was billed and less than a quarter paid for.^[32]

• List of power stations in Iraq