A company that generates 65% of the Kurdistan Region’s electricity has met with the Kurdistan Regional Government’s (KRG) Ministry of Finance and Economy to discuss outstanding payments for electricity production.
Finance Minister Awat Sheikh Janab held talks with Ahmed Ismail, owner of the Ahmed Ismail Group, on Tuesday. The company operates three major power stations in Erbil, Sulaimani, and Duhok. Together, the plants produce 4,000 megawatts of electricity, making the group the largest electricity producer in the Kurdistan Region.
The Finance Ministry praised the company’s contribution to the national power sector. It said the Ahmed Ismail Group has supplied a large share of the Region’s electricity for many years. Officials also recognized the company’s role in maintaining stable electricity services despite financial challenges.
During the meeting, both sides discussed government payments related to electricity production. The ministry reaffirmed its support for the company’s requests and stressed the importance of maintaining reliable electricity supplies across the Region.
The ministry also acknowledged that financial difficulties have delayed payments to electricity producers. Despite those delays, the Ahmed Ismail Group has continued generating electricity. Officials described the company’s efforts as a demonstration of national responsibility during years of economic hardship.
The company plays a key role in the KRG’s Runaki Project, which aims to provide 24-hour electricity throughout the Kurdistan Region. More than 85% of the Region now receives uninterrupted electricity. The Ahmed Ismail Group produces more than half of the electricity supplied through the project.
According to the Finance Ministry, electricity production has cost the Kurdistan Region more than 10.26 trillion Iraqi dinars over the past seven years. The government has paid about 4 trillion dinars to electricity producers during that period. However, more than 6 trillion dinars remains unpaid because government banks continue to face cash shortages.
The ministry also reported that electricity production costs have increased over time. Annual spending reached 1.272 trillion dinars in 2019 before rising to more than 1.6 trillion dinars in 2024. Last year’s spending declined slightly to 1.479 trillion dinars.
Officials said limited cash liquidity remains the main reason for delayed payments. They added that the government continues to prioritize support for electricity producers as it works to strengthen the Region’s power sector.
