The deal, which was signed between the companies and northern Iraq's semi-autonomous government in Erbil, would see Kartet supply 200 megawatts (MW) a year to northern Iraq, while Akas was given the right to export 1 billion kilowatt hours of power annually to the region.
The export deal is part of a broader energy partnership between Turkey and northern Iraq that has increasingly angered Iraq's central government in Baghdad. This year, Erbil began exporting crude oil to Turkey by truck, a deal which earned a harsh rebuke from Baghdad. Baghdad has also criticized Erbil for signing an energy agreement with companies independently of the Iraqi capital. Often those deals have been made for territories that are disputed between Erbil and Baghdad.
Kartet supplied electricity to border towns in Iraq up until 2008 when payment issues and security concerns led the company to stop its exports. The EDPK's decision is the first go-ahead from Ankara on energy exports and comes after Iraq's long civil war left much of the country bereft of dependable power and woefully under-invested. Kartet said last month that its electricity exports could help about 1 million Iraqis obtain access to power.