Erbil Bright, Baghdad Dark:
Iraq Wastes $18 Billion in Gas Amid Power Crisis
Kurdistan stands as a rare bright spot in Iraq’s troubled energy landscape. Despite years of financial strain and political pressure from Baghdad, the Kurdistan Government (KRG) has made significant progress in providing uninterrupted electricity to its citizens — a stark contrast to the rest of Iraq, where millions continue to live in the dark.
A Bright Kurdistan
Since 2014, the KRG has weathered multiple economic crises — from the costly war against ISIS and the global pandemic to the collapse of oil prices and repeated budget cuts by Baghdad. According to a 2024 report by the Atlantic Council, the KRG’s official share of the federal budget was 12.67%, totaling around 13.5 trillion Iraqi dinars. Yet, the federal government has often withheld or delayed these funds.
In May 2025, tensions escalated again when Iraq’s Ministry of Finance accused the KRG of “exceeding its revenue by $10.34 billion” and suspended the salaries of tens of thousands of public employees in the Kurdistan Region. Critics pointed out the inconsistency in Baghdad’s priorities — noting that while the budget for the Popular Mobilization Forces (PMF) soared from $2.16 billion in 2022 to $3.5 billion in 2024, essential allocations to the Kurdistan Region were curtailed.
Despite these challenges, the KRG launched the “Runaki Project” in 2024 to ensure 24-hour electricity across the Region by the end of 2026. The project has already achieved notable success: over 2.7 million people — nearly 40% of the population — now enjoy uninterrupted power. The KRG has added 1,840 megawatts of new capacity, bringing the region’s total to about 8,200 megawatts.
More than 3,500 electricity distribution projects have been completed under this initiative. Additionally, 2,100 private diesel generators have been permanently shut down, marking a step toward cleaner air and reduced carbon emissions. According to Al-Monitor, around 30% of the Kurdistan Region’s residents now have round-the-clock power, an achievement almost unparalleled in Iraq.
The KRG’s energy policy emphasizes modernization, sustainability, and independence from Baghdad’s electricity grid. The regional government is also expanding investment in renewable sources and natural gas utilization to reduce reliance on diesel and imported fuels. This energy autonomy has become a symbol of the region’s administrative competence and forward planning compared to the federal government’s inefficiency.
Baghdad: A Rich and Corrupt Capital
Meanwhile, Iraq’s capital — home to nearly six million people — continues to face persistent blackouts. The electricity supply in Baghdad typically operates in three-hour cycles, leaving neighborhoods without power for extended periods. Despite vast natural and financial resources, Iraq has failed to translate its oil wealth into reliable energy for its citizens.
In 2025, the country lost around 20,000 megawatts of power after the suspension of electricity and gas imports from Iran, worsening the crisis. A study by the Baker Institute found that Iraq flares approximately $18 billion worth of natural gas each year instead of capturing it to generate electricity. This waste has long been a source of criticism from energy experts and economists, who see it as emblematic of government corruption and inefficiency.
The Ministry of Electricity in Baghdad promised in December 2024 to build 74 new power stations and repair 900 distribution units before the summer of 2025. However, those plans remain largely unfulfilled as the capital’s residents continue to face power shortages well into the winter.
The problem extends beyond Baghdad. In Anbar province, residents suffer from heavy industrial pollution caused by private factories operating near residential zones. The thick smoke emitted by these facilities has triggered widespread respiratory diseases, particularly among children and the elderly.
Locals blame government negligence. “These factories are very dangerous for people’s lives because they cause shortness of breath and have a very unpleasant smell,” said citizen Sabah Tai, calling for urgent government intervention. Another resident, Abu Ahmed, echoed the sentiment, saying, “Shutting down these private factories is very important so that they no longer affect citizens’ health.”
Environmental authorities in Anbar acknowledge the existence of dozens of unlicensed factories but admit facing obstacles due to political influence. Dr. Omar al-Dulaimi, Director of the Habbaniyah Environment Department, said, “Many industrial activities in Anbar province have toxic waste and harmful gases, polluting the environment. We have taken measures, such as imposing fines, but their negative consequences are very significant.”
While citizens struggle with pollution and power shortages, the central government continues to burn billions of dollars’ worth of gas and import electricity from neighboring countries. The stark contrast between the Kurdistan Region’s illumination and Baghdad’s darkness underscores a deeper reality — one of governance disparity, accountability, and the will to reform.
The KRG’s efforts to modernize its infrastructure and provide sustainable power stand as a model of resilience in Iraq’s broader struggle with corruption, mismanagement, and dependence on foreign energy. As the Kurdistan Region moves toward full electricity coverage, Baghdad’s failures cast a long shadow over a country still unable to harness its own vast potential.
https://www.basnews.com/en/babat/896355