KRG Signs 100 Billion Dinar Contract for Three Power Substations in Erbil
KRG signed a 100 billion dinar contract for three substations, advancing the Runaki project and the 9th cabinet’s push for 24-hour electricity.
ERBIL (Kurdistan24) - The Kurdistan Region’s Ministry of Electricity announced on Sunday the signing of a 100 billion Iraqi dinar contract to implement three new 132KV power substations in Erbil, as part of broader efforts to expand electricity infrastructure and deliver continuous power across the region.
Kamal Mohammed Salih signed the agreement with HERO Company to construct the substations in Shamamak, Hasarok, and Timar.
The ministry said all three projects will be completed within two years, with full government support to ensure timely execution.
The minister emphasized that the projects are essential for reducing load pressure across Erbil and the surrounding areas, particularly in high-demand zones.
He also stressed the importance of completing the projects on time and maintaining high technical standards, noting their role in strengthening the overall electricity grid.
Ari Zarari said the company is committed to delivering the projects with high quality, highlighting their importance for public services as well as the industrial and agricultural sectors.
The new substations are directly tied to the KRG’s flagship Runaki (24-hour electricity) project, launched under the 9th cabinet to ensure an uninterrupted power supply across the Kurdistan Region.
The project aims to deliver 24-hour electricity to all citizens by the end of 2026. Currently, more than 85% of the population, around 5.5 million people, are already covered, according to the KRG official platform.
The plan includes:
- Expanding transmission networks
- Building and upgrading substations
- Reducing reliance on private generators
The three 132KV substations are considered critical infrastructure nodes that will help stabilize supply, particularly in rapidly growing urban areas like Erbil.
The 9th cabinet, led by Prime Minister Masrour Barzani, has prioritized electricity reform as a cornerstone of its governance program.
Key achievements and indicators include:
- Significant reduction in power outages across major cities
- Integration of large segments of the population into the national grid system
- Introduction of digital billing and subsidy reforms
- Improved efficiency, where around 80% of households now pay less compared to previous generator-based systems
The government has also invested heavily in infrastructure, allocating billions of dollars to expand generation capacity, upgrade transmission lines, and modernize distribution networks.
Officials say the electricity improvements are not only enhancing daily life for citizens but also supporting economic growth.
A stable power supply is increasingly critical for:
- Industrial production
- Agricultural development
- Private sector investment
The new substations are expected to further strengthen these sectors by ensuring more reliable and consistent electricity access.
The 100 billion dinar contract reflects the Kurdistan Region’s continued push under the 9th cabinet to modernize its energy infrastructure, with the Runaki project emerging as a central pillar in delivering sustainable, 24-hour electricity and supporting long-term economic development.
Edited by Kamaran Aziz.