Landmark project in four governorates to increase power plant output by 50%, alleviating chronic electricity shortages
SHANGHAI, December 20, 2025 /PRNewswire/ — Shanghai Electric inaugurated the Euphrates Combined Cycle Expansion Project in Iraq. As the project contractor, Shanghai Electric is upgrading power plants in four Iraqi governorates by transforming simple cycle units into combined cycle systems. The expansion will add a total capacity of 625 megawatts (MW) and is designed to increase the plant’s overall efficiency by approximately 50%, generating an additional 5 billion kilowatt hours (kWh) of electricity per year without increasing fuel consumption. This initiative is poised to significantly alleviate the country’s persistent electricity shortages.
“The urgent need for energy security and development in Iraq is clear. We are honored that our efficient combined cycle technology is recognized as essential to the modernization of this critical infrastructure,” said a Shanghai Electric spokesperson. “This project illustrates our commitment to supporting the energy security and green development of Belt and Road countries through technological innovation.”
Iraq, a major oil producer in the Middle East, has faced severe electricity shortages for more than three decades. Most of its power plants rely on natural gas, but domestic gas development lags, creating a heavy reliance on imports. This energy deficit has become a persistent challenge to people’s livelihoods and a bottleneck to national reconstruction and economic growth.
Shanghai Electric’s contracted expansion project along the Euphrates River began earlier this year and covers Iraq’s Najaf, Karbala, Babylon and Al-Qadisiyyah governorates, with all improvements centered around advanced combined cycle technology. Basic equipment has now arrived on site and construction is progressing thanks to the collaboration of Chinese and Iraqi teams. Since its launch, the project has attracted considerable attention from the Iraqi government and public.
Iraqi Electricity Minister Ziad Ali Fadel praised the strategic importance of the project, saying: “This initiative is very important to improve Iraq’s electricity supply and optimize its electricity infrastructure. Once operational, it will effectively reduce Iraq’s dependence on imported natural gas and reduce its fuel costs for electricity generation.
At the Najaf Power Plant, the upgrade uses high-temperature exhaust gases from existing gas turbines as a heat source. The exhaust gases are directed to heat recovery steam generators to produce high-pressure steam, which then drives a new steam turbine to create additional electricity. This combined cycle process increases output and efficiency without additional fuel and reduces thermal pollution of the original units.
Naseem Ayad, Iraqi project manager at the Najaf site, said: “Chinese energy equipment and technologies help us reuse high-temperature exhaust gases, thereby increasing production capacity while reducing thermal pollution. This project sets a benchmark for the modernization of power plants in Iraq and reflects local hopes for more reliable electricity and better living conditions.
At the Karbala site, basic equipment such as heat recovery steam generators and direct air-cooled condensers were delivered. This phase of the project marks one of the first combined cycle expansions in Iraq to fully utilize Chinese equipment and standards, with core systems designed and manufactured in China. This will effectively boost the deployment of Chinese equipment abroad and improve the recognition of Chinese standards in Iraq.
Once completed, the project is expected to improve local livelihoods, support post-war reconstruction and establish a strong energy foundation for Iraq’s industrial recovery and economic growth.
Shanghai Electric remains committed to supporting sustainable development in the Belt and Road regions and around the world through advanced, efficient and environmentally friendly energy technologies.
For more information, please visit https://www.shanghai-electric.com/group_en/.
SOURCE Shanghai Electric
