The low and medium voltage divisions of the Siemens infrastructure & cities sector has been awarded an order by Toyota Tsusho Corporation to build 24 transformer substations for the Ministry of Electricity in Iraq.

Siemens will build the turnkey substations in ten Iraqi provinces to help upgrade the power supply in the country, a statement from the company said. The order has a volume of €62.1 million ($80.8 million).

Iraq still faces major challenges in the modernisation of its infrastructure. Along with the supply of clean drinking water, providing the population with a stable supply of energy is one of the most urgent problems.

This applies in particular to hot days when air-conditioning units and refrigerators throughout the country are running non-stop and consume a large proportion of the available energy.

Although nearly 96 per cent of the country’s inhabitants are connected to the electricity grid, the supply is restricted in some areas to only a few hours a day. The population, the service sector, and industry all compete for the scarce supply of energy, which acts as a barrier to investment by the private sector. Fifty-five per cent of the total demand for electricity in Iraq was met in 2011, according to a study conducted by the International Energy Agency (IEA).

“The country had suffered from a significant reduction in its power supply and there is a pressing need to also add distribution capacity to the grid,” said Joerg Scheifler, CEO of Siemens Infrastructure and Cities Sector in the Middle East.

“We are very pleased to have won this contract and hope it will facilitate better living conditions for many Iraqis, as a basic need such as uninterrupted electricity supply becomes available to a wider section of the population.”

The order comprises delivery of all components as well as civil and installation works including the connection of the substations to the grid. The delivery package contains 33 and 11kV medium voltage switchgear, 0,4kV low voltage switchgear as well as the transformers. The project is being managed from Turkey and the products will be shipped from Europe and Turkey.

“These substations will help make the power supply in Iraq safer and more reliable. Upgrading the energy infrastructure will support Iraq in its economic and social development,” said Ralf Christian, CEO of the Siemens low and medium voltage division. – TradeArabia News Service