Nothing is more crucial to stability and economic sustainability than energy security. With the increasing digitization of the global energy system, reliable power sources have become the sine non qua of energy security, a trend that is only likely to grow in the future. Seeing such developments, the Kurdistan Region has made significant strides in developing its electricity sector over the past two decades with the goal of reaching self-sufficiency in power.
Through a combination of public and private investments, the region has focused on enhancing its electricity infrastructure, which has led to several key improvements, including investments in new power plants and upgrades of existing facilities. The result is a substantial increase in electricity generation capacity.
Moreover, to ensure that electricity generated in these plants can be effectively delivered to consumers, the region has expanded its transmission and distribution networks. This includes building new lines and upgrading existing ones in addition to building hundreds of substations and introducing smart meter systems to ensure more efficient distribution and revenue management, to improve reliability and reduce losses.
Supply and distribution challenges
The involvement of both the public and private sectors has been crucial in financing these developments. The former has focused on bolstering transmission and distribution infrastructure, while the latter has made substantial contributions to expanding generation capacity. The average electricity generation capacity of the region has increased from less than 200 megawatts (MW) in 2007 to 8,000 MW in 2025, representing an increase of nearly 400%.
Overall, these efforts have significantly improved the reliability and availability of electricity in the Kurdistan Region, contributing to economic growth and improving the quality of life for its residents. However, challenges remain, including an insufficient supply of natural gas to power plants and blanket subsidies that have exacerbated the losses experienced in the transmission and distribution networks and created fiscal imbalances that handicap the region.
According to the Kurdistan Regional Government (KRG) Ministry of Electricity, electricity production was 4,000 MW in 2024. Despite having the capacity to produce roughly 8,000 MW of electricity, the lack of gas supplies for power plants has left several of them idle. Table 1 presents a list of the region’s power plants with their average output for 2024.
Another challenge is that not all the electricity generated at power stations reaches customers, with resources lost or wasted. This loss occurs for several reasons, including inefficiencies in substations, overloading of transmission and distribution lines, and other non-technical losses, which stem from electricity theft, metering errors, unmetered supply, and billing issues.
According to the World Bank, electricity loss and waste in Iraq reached 59% in 2024. However, the KRG Ministry of Electricity places this loss at roughly 40%, with non-technical losses being as high as 30%. By implementing continuous electricity supply and utilizing smart meters, these losses could be reduced by over 20%.
Table 1 also reveals that while gas-powered plants generate most of the region’s electricity, they are underperforming due to gas shortages, with current supplies only meeting 50% of the region’s demand. Dana Gas, which was contracted in 2007 to develop the Khor Mor Gas field, currently produces 525 million standard cubic feet per day (mscf/day) and plans to add 250 mscf/day more next year. Meanwhile, the Khurmala Combined Cycle Power Plant in Erbil uses 130 mscf/day of associated gas to generate over 1,000 MW of electricity. Despite these developments, the region requires additional gas to fully realize the potential of its gas turbine power plants.
In an encouraging development, the KRG Ministry of Natural Resources, under KRG Prime Minister Masrour Barzani’s supervision, signed agreements with two U.S. oil and gas companies, Western Zagros and HKN Energy, on May 19, 2025, in Washington, D.C. These important agreements grant rights to develop regional oil and gas fields and are crucial for ensuring stable electricity for residents and unlocking the region’s hydrocarbons potential.
The Runaki project
The Runaki project, put forth on October 17, 2023 by Prime Minister Barzani, also promises to bolster the region’s electricity security. “Our aim is to guarantee that 24-hour electricity is available throughout the region by the end of 2026,” said Prime Minister Barzani.
Table 2 shows per capita electricity consumption across various countries in 2024, including the percentage of technical and non-technical losses in transmission and distribution. Data for the Kurdistan Region comes from the KRG Ministry of Electricity.
The Runaki project reveals the tangible steps being taken to address the region’s challenges in the power sector. Smart meters are expected to reduce electricity losses. If losses can drop below 20%, 3,200 MW of the 4,000 MW produced in the region will reach customers, providing each with 4,312 kilowatt hours (kWh) annually. A family of five would get 1,800 kWh. If efficiently used, current electricity production could meet domestic demand and excess supplies could be exported to Iraq’s neighboring governorates. As seen in Table 2, the Kurdistan Region’s consumption per capita is higher than most of the countries listed.
Table 3 presents the electricity consumption for a family of five based on the usage of essential electrical appliances. Wattage rates are sourced from the Ministry of Electricity’s website.
Forthcoming projects
Before the Runaki project, customers depended on an unreliable grid and expensive standalone generators. Now, access to reliable and affordable electricity has improved. A study conducted in 2022 by the KRG Statistics Office entitled “Electric Generators in the Private Sector, Kurdistan Region of Iraq, 2021,” found that the average price of one ampere (amp) of electricity from neighboring generators in the Kurdistan Region was 11,000 Iraqi dinars (ID), with each customer using an average of 4 amp. The current average price is 15,000 ID, according to an interview by KNN with the former KRG Deputy Minister of Electricity. For estimation purposes, we assume that the average price of an amp is 13,000 ID.
A comparison of electricity usage and cost before and after the Runaki project is provided below:
According to Table 4, customers who consume 800 KWh of electricity per month continue to pay the same amount as they did prior to the Runaki project.
Hoshyar Siwaily is the Director of the Kurdistan Democratic Party’s Foreign Relations Office. He previously served as Electricity Minister of the Kurdistan Regional Government
