A predicted minimum investment of $50bn is set for Iraq’s energy network over the next five years as the country’s security situation continues to improve.

The prediction is contained in a report called ‘Iraq – An Energy Overview 2012’, developed by EIC Consult, the market research and consultancy arm of the Energy Industries Council (EIC).

The EIC Consult report found that, despite continued concerns over security, political instability, and the lack of a settled investment environment, the proposed infrastructure overhaul and ambitious plans to increase oil & gas production present huge and long-term opportunities for service providers at every stage of the supply chain.

The report also concluded that Iraq still has a severely underdeveloped power sector, with infrequent supply and insufficient capacity. The report found that electricity losses during transmission and distribution only exceeded 18 billion kWh in 2009, demonstrating that Iraq’s power grid has not been adequately developed to keep pace with increases in generation capacity.

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