KRG targets financially self-sustaining electricity by 2028
Shafaq News- Erbil
Iraq’s Kurdistan Region (KRI) aims to make its electricity sector financially self-sustaining within two years, with production costs currently exceeding $200 million a month, Aziz Ahmad, Kurdistan Regional Government (KRG) Deputy Chief of Staff to Prime Minister Masrour Barzani, said on Tuesday.
Speaking at the Middle East Research Institute’s MERI Forum 2026 in Erbil, Ahmad said $120 million of the monthly electricity production costs goes toward power plant expenses and that the KRG’s new financing model aims to bring sector revenue in line with spending.
The KRI supplied 1,000 megawatts of electricity to other Iraqi provinces during peak summer and winter demand in 2025, he said, adding that revenue from those supplies helps the KRG pay electricity producers. The government paid 80% of the amounts owed to those companies last year.
In July, the KRG reported annual savings of more than $300 million from renegotiated electricity generation contracts.
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