Economic Observatory: 41% of Iraq’s Electricity Supply in 2025 Came from Investment Projects and Regional Interconnections

The “Eco Iraq” economic observatory, based on the Ministry of Electricity’s 2025 annual statistical report, said Iraq’s national power system continues to rely significantly on sources outside government-owned generation plants, with around 41% of total electricity supplied through power purchases from investment projects and electricity interconnections with neighboring countries.

According to a statement issued by the observatory, Iraq’s total electricity generation in 2025 reached 170,123,456 megawatt-hours.

Government-owned power plants operated by the Ministry of Electricity, including gas-fired, steam, hydroelectric and diesel plants, accounted for approximately 59% of the country’s total electricity output, while the remaining 41% was secured through electricity purchased from investment companies operating in Iraq and imports via regional power interconnections.

The observatory highlighted a sharp decline in hydroelectric generation as one of the key developments recorded in the ministry’s report. Hydropower output fell by approximately 50.8%, dropping from around 3.48 million megawatt-hours in 2024 to approximately 1.71 million megawatt-hours in 2025.

“Eco Iraq” attributed the decline to worsening drought conditions and falling water levels in dams and river tributaries, which significantly affected the performance of hydroelectric power stations.

The report also identified additional technical challenges in the electricity sector, including thermal efficiency rates falling below 20% at some gas-fired and steam power plants.

It further noted that several power stations and transmission lines remained out of service for months due to delays in maintenance work and shortages of spare parts, adding to the operational challenges facing Iraq’s electricity system.