Japanese "Toyota" enters the Iraqi electricity system

Shafaq News / On Thursday, the Minister of Electricity, Ziyad Ali Fadhel, presided over the signing of a memorandum of understanding with Toyota Corporation of Japan aimed at developing electrical networks and capacities of the electrical system, in the presence of the Japanese Ambassador to Iraq.

A statement from the minister's office indicated that "the memorandum stipulates that the Japanese company will finance and implement several projects in the production, transmission, and distribution sectors, and joint committees will be formed between the parties to identify the proposed projects for implementation and their priorities."

Following the signing of the memorandum of understanding, the minister expressed "appreciation for Japan's role in supporting Iraq and the contribution of Japanese companies to its reconstruction efforts, especially in the energy sector," renewing his call "for foreign companies to seize investment opportunities and implement various projects in the electricity sector."

Last month, the Cabinet granted the Minister of Electricity the authority to sign a memorandum of understanding between the Ministry of Electricity and Toyota Tsusho Corporation in line with the ministry's plan and available financial allocations.

Notably, Iraq's electricity supply faces substantial challenges stemming from years of neglect, underinvestment, and conflict-induced damage to infrastructure.

The country's power grid struggles to meet demand, particularly during peak periods exacerbated by soaring temperatures.

Dependence on electricity imports from neighboring countries like Iran and Turkey further complicates the situation, leaving Iraq vulnerable to geopolitical tensions and supply disruptions.

Efforts to address these challenges include government initiatives aimed at upgrading infrastructure, constructing new power plants, and improving efficiency.

However, progress is hindered by ongoing political instability, corruption, and economic constraints.

Despite these obstacles, there are opportunities for investment in renewable energy projects and modernizing existing infrastructure.

Achieving a stable and reliable electricity supply in Iraq requires sustained investment, effective governance, and resolution of political and economic challenges.