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October 17, 2018

Siemens loses $15bn Iraq power-generation contract to GE

Siemens is said to have lost out on a $15bn contract to supply 11GW of power-generation equipment to Iraq after an intervention from the Trump administration on behalf of General Electric (GE).

Siemens is said to have lost out on a $15bn contract to supply 11GW of power-generation equipment to Iraq after an intervention from the Trump administration on behalf of General Electric (GE).

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Although it appeared that Siemens would bag the major deal, the contract was announced in favour of GE due to pressure from the Trump administration on the Iraqi Government, according to sources familiar with the matter. Now GE is set to take the significant share of the deal.

News of losing the contract could be seen as a blow for Siemens, as it is understood to have been working on the deal for months.

Last month, Siemens president and CEO Joe Kaeser met Iraqi Prime Minister Haider al-Abadi and is reported to have discussed the new proposal, which not only would provide power to the 300,000 Iraqis but also has the potential to support the country in its economic development.

“The new deal is expected to bolster GE’s power sector, which is reportedly reeling from losses over the past two years.”

The new deal is expected to bolster GE’s power sector, which is reportedly reeling from losses over the past two years.

On behalf of Siemens, German Chancellor Angela Merkel is also said to have contacted Iraqi Prime Minister to consider Siemens for the contract, and also reportedly sent the State Secretary Thomas Bareiß to Baghdad to support negotiations.

Prior to awarding the contract to GE, the US and Iraqi governments signed a non-binding memorandum of understanding (MoU), where the two nations agreed to co-operate with each other on oil and gas production and power generation sectors.

In 2008, GE is reported to have acquired a significant share in power equipment contracts that were awarded by the Iraqi government.

The Iraq Government’s decision on the contract comes after its efforts to seek help from the Trump administration over the country’s gas imports from Iran.

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Delve into the renewable energy prospects for Morocco

In its new low greenhouse gas (GHG) emission strategy to 2050, submitted to the United Nations (UN), the Ministry of Energy Transition and Sustainable Development (MEM) of Morocco suggested to raise the share of renewable capacity in the country’s total power installed capacity mix to 80%.   Morocco currently aims to increase the share of renewables in total power capacity to 52% by 2030. The new strategy plans to increase the share of renewable capacity to 70% by 2040 and 80% by 2050.  GlobalData’s expert analysis delves into the current state and potential growth of the renewable energy market in Morocco. We cover: 
  • The 2020 target compared to what was achieved 
  • The 2030 target and current progress 
  • Energy strategy to 2050 
  • Green hydrogen 
  • Predictions for the way forward  
Download the full report to align your strategies for success and get ahead of the competition.   
by GlobalData
Enter your details here to receive your free Report.

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