VZCZCXRO8782
RR RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #2693 2251301
ZNR UUUUU ZZH
R 131301Z AUG 07
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 2770
INFO RUCNRAQ/IRAQ COLLECTIVE

UNCLAS BAGHDAD 002693 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ENGR EPET IZ
SUBJECT: CODEL BAIRD DISCUSSES IRAQ'S ENERGY NEEDS WITH 
ELECTRICITY MINISTER 
 
¶1. (SBU) Begin Summary: Electricity Minister Dr. Karim Wahid 
al-Hassani outlined Iraq's energy needs to CODEL Baird (Rep. 
Brian Baird (D-WA), Rep. Christopher Shays (R-CT), and Rep. 
Ralph Hall (R-TX)) in an August 11 meeting. Highlighting 
security and fuel shortages as the two most pressing issues, 
Wahid described his ministry's efforts to improve the 
provision of this essential service to Iraqis. Because of the 
great distances between electricity generation facilities and 
Baghdad in particular, the national grid is particularly 
vulnerable to interdiction. In order to address this, Wahid 
noted, construction of new generation facilities located 
closer to Baghdad is underway. In spite of Iraq's tremendous 
oil resources, a dearth of refining facilities necessitates 
the import of fuel for electricity generation. Further, lack 
of cooperation between key ministries, notably with the 
Ministry of Oil, hampers the GOI's ability to import 
sufficient quantities of fuel. Congressman Baird recommended 
that the Electricity Minister investigate renewable energy as 
a potential salve for Iraq's energy woes. End Summary. 
 
¶2. (SBU) Congressman Brian Baird opened the August 11 meeting 
by asking for a brief description of Iraq's current energy 
needs. Electricity Minister Dr. Karim Wahid al-Hassani 
highlighted two main issues affecting the government's 
ability to provide electricity to its citizens: the security 
situation and fuel shortages. Iraq's energy infrastructure is 
vulnerable to insurgent attacks, Wahid explained, and until 
the restoration of peace and stability, the government of 
Iraq's (GOI) ability to meet Iraqis' demand for electricity 
will be compromised. With the advent of the Baghdad Security 
Plan, the GOI has begun to achieve gains on the security 
front, Wahid added. Once the security situation is resolved, 
greater foreign investment in Iraq's energy sector 
infrastructure may resume. 
 
¶3. (SBU) Three major refineries, Bayji in Salah ad Din 
province north of Baghdad, Daura refinery in central Baghdad, 
and the Southern Refining Company in Basrah, constitute the 
overwhelming majority of Iraq's refining capabilities, Wahid 
said. The refineries are supplied by natural gas and oil 
pipelines from major fields in the north and the south. 
Currently, electricity generation meets 60 to 65 percent of 
demand. Wahid complained that a shortage of natural gas 
adversely affects Baghdad's power generation units' ability 
to cope with demand. 
 
¶4. (SBU) Wahid continued that the Ministry of Oil (MoO), by 
failing to develop plans for renovating badly deteriorating 
refineries or the construction of new facilities, shouldered 
much of the blame for the electricity problems in Iraq. Many 
of the pipelines supplying oil and gas for electricity 
generation were not operating at full capacity due to much 
needed repairs, he complained, and the MoO was not addressing 
the need. Further, the Daura refinery continues the needless 
waste or flaring of natural gas, Wahid added, but the MoO has 
provided no plan for renovating the refinery to capture and 
utilize the gas. Currently, the MoO, the Ministry of Planning 
Development and Cooperation (MoPDC), and the Ministry of 
Electricity (MoE) convene weekly meetings to coordinate 
projects related to energy generation, but the focus thus far 
has been on increasing the amount of crude oil designated for 
export rather than electricity generation. 
 
¶5. (SBU) Congressman Baird suggested that the GOI focus on 
reducing the distance between electricity generation and the 
distribution centers. Wahid responded that currently five 
electricity generation plants are under construction in the 
Baghdad area. The primary problem has been getting the 
petroleum product to the plants. One possible source was the 
oil from the fields east of Baghdad; however, that oil 
requires additional refining before it may be rendered 
suitable for use in the generators. 
 
¶6. (SBU) Congressman Baird inquired whether the GOI had 
investigated renewable energy sources as a possible solution 
to electricity shortages in Iraq. Wahid stated that wind 
power had been deemed infeasible, but that solar energy 
solutions were being developed. Currently, 5,200 solar 
powered cells were being installed throughout Baghdad to 
power streetlights, and the MoE was investigating the 
feasibility of installing residential solar powered cells. 
Congressman Baird suggested putting Wahid in touch with a 
notable expert in the field of renewable energy technologies. 
 
¶7. (U) CODEL Baird did not have the opportunity to clear on 
this cable. 
 
CROCKER