Iraq’s Electricity Permacrisis Deepens

2 Oct 2026 Issue: 69 / 40 By: Yesar Al-Maleki

Iraq’s summer power shortfall is widening as soaring demand is compounded by gas shortages, weak finances and chronic grid losses. Supply fell to 22GW against a record 60GW peak demand this summer. The deficit has become structural and plans to add capacity and import more power will offer only limited relief unless Baghdad’s heavily subsidized distribution system is reformed.

Decades of mismanagement left Iraq’s power sector woefully unprepared for the unprecedented challenges posed by the regional conflict that erupted on 28 February. The country’s power sector is unable to meet domestic demand at the best of times, and its reliance on imports from Iran left it especially vulnerable.

Iraq suffers from the twin problems of rampant demand growth and stagnating supply. Electricity demand in most Gulf states has declined this year because of disruption caused by the conflict, but Iraq’s demand continued to rise sharply. Peak demand rose by 9% to 60GW this summer, double the 2020 level. (CONTINUED - 2426 WORDS)