Iran Gas Cutoff Knocks Up To 4,500 MW Off Iraq’s Power Grid

By Mansour Al-Maswari

(Al Bawaba) -- Iraq’s power sector was hit hard after Iran suspended all natural gas exports, wiping out 4,000 to 4,500 megawatts from the national grid and exposing the fragility of the country’s already overburdened electricity system.

Spokesman Ahmed Moussa said Baghdad received an official notification from Tehran citing “extraordinary circumstances,” prompting the shutdown of several gas-fired generating units and load restrictions at others. The disruption has reduced supply during peak winter demand, forcing utilities to curtail output in parts of the country.

To limit the impact, the ministry has shifted affected plants to alternative local fuels in coordination with the Ministry of Oil.

Moussa said generation remains “under control,” adding that ongoing maintenance, rehabilitation, and capacity-expansion projects have helped cushion the shock, though service hours have been affected.

Iran supplies up to 40 percent of Iraq’s gas needs for power generation, underpinning a multi-billion-dollar annual energy trade. Recurrent interruptions, often linked to seasonal demand in Iran, technical constraints, or payment hurdles, have repeatedly exposed Iraq’s dependence on a single supplier.

The halt comes amid continued U.S. sanctions on Iran, which complicate payments despite periodic waivers granted to Iraq.

The latest outage could accelerate Baghdad’s push to diversify energy sources, including expanding domestic gas capture, securing Gulf imports, and pursuing alternative regional supply arrangements. However, Iran will remain a critical supplier in the near term.