Shafaq News/ Prolonged power outages caused by dwindling Iranian gassupplies and unstable electricity imports from Iran have brought industrialactivities in Iraq’s Diyala province to a near standstill. The outages, whichhave reduced power availability, are disrupting livelihoods and forcingbusinesses to rely on costly diesel generators, further cutting into profits.
National-Level Energy Crisis
A 15-day maintenance shutdown of Iranian gas supplies starting onNovember 24 severely impacted Iraq’s electricity generation, cutting poweroutput by 5,500 megawatts (MW) and leaving Baghdad, the central region, and theMiddle Euphrates without adequate electricity.
Gas flows from Iran to Baghdad and central Iraq were completely haltedduring the maintenance period, with only 7 million cubic meters per dayredirected to southern regions, far below the agreed supply of 25 million cubicmeters per day.
"The gas supply is scheduled to be 25 million cubic meters daily,but only 7 million cubic meters are currently being supplied, redirected fromBaghdad and central regions to the south," the Iraqi Electricity Ministrysaid in a statement.
Iraq relies on imports from Iran for 30-40% of its energy needs.
On December 6, Iranian gas supplies to power plants in central Iraqbegan to resume gradually following the completion of maintenance on gastransmission lines, a government source told Shafaq News.
Electricity availability is expected to improve in central areas,particularly Baghdad, Wasit, Diyala, parts of Al-Anbar, and other provinces, asgas flows return to normal levels. However, experts warn that Iraq’s dependenceon Iranian gas remains a vulnerability in its energy sector, underscoring theneed for domestic energy investments to reduce reliance on imports.
Impact on Local Industries
In the industrial zones of Baqubah and al-Khalis of Diyala Province,home to auto repair workshops and metalworking shops, operations have slowed toa crawl. Business owners report mounting losses as they struggle to meetcustomer demands with limited power.
"Electricity outages lasting for hours disrupt our workentirely," said Ahmed al-Tai, a car repair shop owner. "We are leftwith no choice but to do basic manual work and avoid taking on complex tasksrequiring electrical equipment."
Metalworker Amir Abbas told Shafaq News, "Our work has becomeunprofitable. Welding and cutting tools need electricity, but with longoutages, especially in the mornings, we’re forced to buy diesel for generators.Sometimes, I just have to go home without completing a single task."
Abbas explained that missing deadlines on projects, such asmanufacturing doors, result in financial losses for both the business and itsworkers. "Electricity should not be cut off in industrial areas duringworking hours. We pay monthly expenses like rent and wages, but the lack ofpower, worsened by disruptions to Iranian supply lines, leaves us at aloss."
Hassan al-Abadi, an employee at a car washing and repair workshop, saidpower outages have slashed their business activity by more than 50%. "Weare spending 140,000 to 150,000 Iraqi dinars per barrel of diesel forgenerators, but the high cost is unsustainable. Many businesses have beenforced to downsize their staff due to declining profits."
Electricity Challenges Tied to Regional Politics
Economic expert Mohammed Haydar linked Iraq’s electricity woes to itsreliance on imported gas and power from Iran, explaining, "The failure ofsuccessive governments to invest in local gas resources and reduce dependencyon imports has taken a toll on industries and markets."
"Certain political factions benefit from continued imports of gasand electricity, which serves the interests of neighboring countries. Iraqurgently needs to focus on local production, especially with abundant gasfields in Mansuriya, Akkas, and the southern provinces. These resources couldfuel domestic power plants and reduce dependency on imports," he pointedout.
Moreover, he called on the Iraqi government to prioritize strengtheningthe country’s electricity infrastructure. "Efforts must be made tostabilize the power grid, as this would have widespread benefits for industrialsectors, attracting investment, and reduce the financial losses borne by boththe government and citizens."