Siemens supplies key components for gas power plants in Iraq for Euro 1.5 billion.

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11 Jan 2009

The Siemens Sector Energy has secured a major contract from Iraq for the supply of key components for the expansion of the country's power system. The purchaser is the Iraqi Ministry of Electricity. The order volume is approximately Euro 1.5 billion. "This is one of the biggest orders Siemens has ever booked in the Middle East," said Wolfgang Dehen, member of the Group Executive Management of Siemens AG and Energy Sector CEO, at the signing ceremony in Baghdad.

Electricity is an essential prerequisite for upward economic development. At present, only half of the installed capacity of 9,000 megawatt (MW) that Iraq needs is actually available. "When these new power plants go on line in 2010 and 2011, they will make an essential contribution to improving the country's power supply situation, which is currently affected by daily power outages," Dehen stated. "At the same time, this order underlines the very encouraging development of our product business, which is set to further expand its share of our overall business volume."

The new gas power plants will run on natural gas or oil and are to be built at the following locations: Rumaila-Basra, Taza-Kirkuk, Dibis-Kirkuk, Baiji and Sadder-Baghdad. Siemens is supplying a total of 16 high-efficiency gas turbines with a total capacity of 3,150 MW. The company's scope of supplies and services also comprises high-voltage switchgear and transformers in addition to the electrical balance of plant, as well as the instrumentation and control systems for the power plants. Siemens will be supplying the components. The plants will be erected by the customer or by general contractors.

Siemens gas turbines feature high efficiency, cost-effectiveness and reliability. More than 3,500 Siemens gas turbines with a total capacity of approximately 165 gigawatts (GW) are currently in operation throughout the world. The company has had operations in Iraq for over 40 years. The Iraqi government's plans envisage quadrupling the country's installed capacity by 2015. “Siemens is ready to support the country to build up an economical and reliable power supply in the long term,” Dehen added.