Iraq Scrambles For Energy Import Alternatives After US Scraps Iranian Electricity Waiver

14 Mar 2025 Issue: 68 / 11 By: Yesar Al-Maleki

The US has cancelled a sanctions ‘waiver’ on Iraqi imports of electricity from Iran, sending Baghdad scrambling for alternatives to keep the lights on. There are few, if any, good options. If Washington moves to block Iranian gas supplies next, Iraq could face a very difficult summer. Importing LNG just before temperatures pick up is unrealistic, leaving Iraq little option but to hike its liquids burn.

Iraqi officials are up against the wall in a bid to find alternatives to Iranian energy imports in the run up to the summer peak power demand season, following Washington’s decision not to renew a 120-day waiver on Iraqi imports of Iranian electricity when the previous waiver expired on 8 March. This comes as Tehran had already since November halted gas supplies to Iraq amid a domestic shortfall (MEES, 24 January).

The US sanctions waiver had been granted since 2018 as a ‘national security’ exemption to financial sanctions on Iran, enabling Baghdad to indirectly pay for power imports, but was left to expire on 8 March despite Iraqi attempts to convince US decision makers otherwise (MEES, 14 February). (CONTINUED - 2204 WORDS)