Fuel Theft Hits Iraq's Power Grid, Inspector Says
Stolen fuel, corruption and mismanagement have kept Iraq's electricity sector failing for two decades, despite tens of billions of dollars in spending.
Few issues anger Iraqis more reliably than electricity. Every summer, as temperatures climb above 50°C, power cuts return, private generators roar in every neighbourhood, and protests break out in the south. Official investigations have repeatedly pointed to a major culprit beyond war damage: theft and corruption in the fuel supply that keeps power stations running.
How the fuel disappears
Inspectors and anti-corruption officials have described fuel meant for power plants being diverted and sold on the black market, lost through falsified records, or smuggled across borders. Some stations have run below capacity or burned inappropriate fuels that damage turbines. The losses compound the sector's other problems: an ageing grid, heavy dependence on imported Iranian gas and electricity, and the flaring of Iraq's own associated gas.
Two decades of failure
Since 2003 Iraq has spent tens of billions of dollars on its power sector, yet supply still falls short of peak summer demand. Billing is weak, subsidies are high and a large share of power is lost before it reaches consumers.
What might change it
Recent governments have signed agreements with international firms to capture flared gas, build new plants and link Iraq's grid to those of Jordan, Saudi Arabia and the Gulf states. US sanctions pressure has made dependence on Iranian gas more precarious.
Progress depends on fixing governance as much as infrastructure. Until fuel supply, metering and collection are brought under control, new capacity will keep leaking away, and Iraq's summers will keep testing its politics.