An initial agreement was signed between Iraq and PowerChina to develop 2 gigawatts (GW) of solar power plants. This information came from the prime minister's media office and said that it is an effort to lower Iraq's dependence on Iranian electricity.
OPEC's second-biggest producer is under increasing pressure from the U.S. to wean itself from Iran's gas and electricity exports as Iran is under U.S. sanctions since 2018.
Iraq has been receiving waivers from the U.S. administration to be able to continue importing Iranian energy since 2018.
However, the unsteady supply of Iranian gas and electricity has led to prevalent shortages in Iraq this summer where the temperature could easily reach 50 degrees Celsius, particularly in the south.
Adding to Iraq's predicament is the challenge of paying billions of dollars of dues to Tehran, complicating Baghdad's ability to settle its dues without facing financial repercussions.