Iraq's electricity ministry signed an agreement with Siemens Energy to rebuild a super-grid station in Mosul that was destroyed in 2014.
The 400-kilovolt plant supports 30 stations with voltage levels of 132-kV, helping plug power outages in the Nineveh province, of which Mosul is the capital.
The planned grid station will help supply power to nearly 700,000 people in northern Iraq, Siemens said in a statement on Tuesday.
Several critical infrastructure in Mosul was destroyed during the capture of Iraq's second-largest city by ISIS in 2014.
"Strengthening the national grid and scaling up its stability is a focal priority for us as demand for power in Iraq increases due to a growing population and to support industries and development projects in the country,” said Khalid Attia, director general, Electricity Transmission Company for Northern Region in Iraq.
The project is funded by Germany's state-owned development bank KfW.
Rebuilding Iraq's power infrastructure, damaged by decades of war, is high on the government’s list of priorities. A crippled utility network has been a key factor behind protests across provinces during summer months, when temperatures can easily soar to 50°C and above.
Companies such as Siemens Energy and GE are helping the Iraqi government rehabilitate its power grid.
Siemens Energy, which was spun off last year from the larger conglomerate, is working on 14 stations across Iraq, according to Mahmoud Hanafy, vice president, grid stabilisation, Middle East.
Iraq is also stepping up efforts to add more power capacity to grid and reduce flaring of gas from its oil fields.
Last month, Iraq's ministry of finance, GE and backers including the UAE's Etihad Credit Insurance finalised the terms on critical power infrastructure rehabilitation projects covering seven plants in the country.
The investment in repairs that will allow plants to generate up to 2.7 gigawatts of power, was backed by the UAE's export credit company, Etihad Credit Insurance. The ECI will insure GE's debt, provided by lender JP Morgan.