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State Department: Iraq pursuing alternatives after U.S. ended waiver permitting electricity imports from Iran
Summary
After the U.S. declined to renew a waiver allowing Iraq to import electricity from Iran, the State Department said Iraq is seeking alternate energy sources, including gas capture and imports, and U.S. companies have signed memoranda of understanding to increase involvement.
A State Department spokesperson confirmed that the waiver allowing Iraq to import electricity from Iran was not renewed in March 2025 as part of the administration's maximum pressure campaign. The spokesperson said the Iraqi government is seeking alternative sources of electricity, including expanding gas capture and increasing imports from neighboring countries.
The spokesperson noted that some of Iraq's efforts to diversify energy sources are benefiting U.S. companies, citing memoranda of understanding with UGT Renewables and GE Vernova as recent commercial developments. The department said it supports Iraqi efforts to end energy reliance on Iran but deferred operational details to relevant agencies.
Why it matters: Iraq's energy mix affects domestic stability and regional ties. The State Department framed nonrenewal of the waiver as part of a broader pressure campaign and described ongoing commercial and technical alternatives Iraq is pursuing.
