Iraq on Sunday signed a contract to establish two power transmission lines with the Gulf Connection Authority.
The cost of constructing the 300-kilometer lines will be borne by the GCC Interconnection Authority and will be connected to the Iraqi electricity system.
The contract provides for Iraq to import 500 megawatts in the first phase, after the completion of the two lines scheduled before the summer of next year.
The agreement was signed in Baghdad on the sidelines of an energy conference by Iraqi Electricity Minister Louay al-Khatib with Chairman of the GCC Interconnection Authority Ahmed Ibrahim.
The pipeline extends in Kuwait, 220 km to the port of Faw in southern Iraq.
Within years, the pipeline would increase its supply to Iraq with a capacity of up to 2,000 megawatts, according to the Iraqi Ministry of Electricity.
The contract is Iraq's second deal in two days aimed at boosting electricity, which currently stands at around 15 GW, well below domestic demand of at least 24 GW.
"This deal is the first of its kind with the GCC countries," Khatib told a news conference, adding that Iraq was holding separate talks with Saudi Arabia, Jordan and Turkey to import electricity.
For his part, the Chairman of the Gulf Linkage said that the construction of the line will cost about $ 220 million, while the practical import will require the signing of an independent agreement, noting that this is the first type of linkage outside the GCC.
The agreement comes after Iraq signed a $ 1.3 billion contract with Germany's Siemens to add 1.7 gigawatts to the national grid by repairing destroyed power plants in the city of Baiji, north of Baghdad.
The Iraqi government says electricity infrastructure needs investment of at least $ 30 billion.
Iraq's power grid has been affected by decades of conflict and poor maintenance, causing frequent power outages across the country.