Iraq turns to floating power stations to ease electricity crisis

Two powerships operated by Turkey’s Karpowership dock in Basra’s ports to generate nearly 600 megawatts of power

The Karadeniz Powership Orhan Ali Khan docked at the port of Umm Qasr in Basra, Iraq. Reuters

Iraq has recently turned to a swift and pragmatic response to its chronic electricity shortages: hiring floating power stations.

While this intervention will alleviate immediate pressure on the crippled national grid, the real test will be whether massive new power generation projects and regional interconnectivity can replace this stopgap with durable energy security.

What’s happening?

In recent weeks, Iraq signed an emergency deal with Turkey’s Karpowership company to use two vessels – commonly referred to as “powerships” or power barges – off the coast of the southern province of Basra, on the Gulf. These giant ships – essentially mobile power plants – are expected to generate up to 590 megawatts, according to the Iraqi Electricity Ministry.

The multi-fuel ships will run for an initial 71-day period and will “play a critical role in stabilising the national grid and meeting demand”, Karpowership said in the statement last week. The financial terms have not been disclosed.

Karpowership has a fleet of floating power stations that it sends to countries that need electricity but don’t have the time or means to build enough permanent onshore capacity. It currently has vessels in countries such as Ghana, Gabon and Brazil, according to its website.

A ferris wheel near the Dora Thermal Power Station in southern Baghdad. AFP

Where are the two vessels moored?

The first barge, the Karadeniz Powership Orhan Ali Khan, docked at Umm Qasr Port on Thursday, Iraq's Minister of Electricity, Ziad Ali Fadel, announced. It has a generation capacity of 125MW and is expected to be operational within about a week when fuel and connections are in place, Mr Fadel added.

The second ship, Orka Sultan, which is of similar capacity, arrived on Saturday and docked at Khor Al Zubair port, the ministry added.

The Iraqi Ministry of Transportation described Orka Sultan as the “longest ship” to enter Khor Al Zubair port, hailing the process of mooring it as “a maritime achievement that reflects the high capabilities of the port's status and proves their readiness for the future", to provide electricity to Iraq.

Iraq is likely to depend on power ships for years to come. The minister said the country was planning to increase the power generated from the vessels to 1,500MW in “the coming years as we are working to keep pace with the loads and achieve stability in Basra and the southern governorates”.

Why is this intervention needed now?

Iraq’s electricity sector is mired in crises, with an infrastructure that has long struggled to keep pace with demand. The crisis started after the 1991 Gulf War, when a US-led international coalition attacked infrastructure in an attempt to drive Saddam Hussein’s army out of Kuwait.

This crisis has been exacerbated since the 2003 US-led invasion that toppled the former dictator, as mismanagement and corruption have hit the country hard. In 2020, former prime minister Mustafa Al Kadhimi put the amount of money spent on the electricity sector since 2003 at least $60 billion.

In 2024, Iraq’s installed capacity stood at about 27,000MW, but summer demand regularly exceeds 45,000MW. The shortfall has worsened this year after Iran reduced natural gas supplies by half to meet domestic demand, cutting nearly 4,000MW from the grid in July.

An Iraqi man cools off as Shiite Muslim pilgrims make their way towards Karbala through Basra in late July. AFP

The US's decision in March not to renew a waiver that had allowed Iraq to buy electricity from Iran, as part of US President Donald Trump's “maximum pressure” campaign against Tehran, has further worsened the situation. Iraq used to buy 500MW of electricity a day from Iran.

Despite being Opec’s second-biggest producer, Iraq is dependent on Iran for about a third of its electricity needs. It buys 50 million cubic metres of natural gas. Importing natural gas is not covered by the sanctions.

This has led to rolling blackouts during peak summer heat, when temperatures top 50°C in southern provinces. Public frustration has developed into protests, reviving memories of the 2018 and 2021 demonstrations over the lack of electricity and basic services.

In addition to the powerships as a measure to tackle the issue, Iraq has also doubled its imports of electricity from Turkey, raising supply from 300MW to 600MW, particularly benefiting the northern provinces of Nineveh, Kirkuk, and Salahaddin.

What about longer-term solutions?

The floating plants highlight Iraq's reliance on quick fixes as bigger plans slowly take shape.

In April, Iraq signed agreements with two American companies, GE Vernova and UGT Renewables, to produce 27,000MW of electricity. The US embassy said the deals were worth “billions of dollars” at the time of signing, but did not give further details.

Iraq has also signed a multi-billion dollar deal for a fully integrated energy project with TotalEnergies in the south. Another deal is with Germany's Siemens Energy.

Iraq is also working on regional interconnections with Jordan and the Gulf Co-operation Council, and on expanding its ties with Turkey. It also plans to add 7,000MW from renewable energy by 2030,