Syria is set to embark on a monumental shift in its energy landscape with the signing of a $7 billion memorandum of understanding (MoU) with a consortium led by Qatar’s UCC Holding. This agreement, reported by Reuters, is not just about building power plants; it’s about rewiring Syria’s future. The consortium will construct four combined-cycle gas turbine power plants, boasting a combined capacity of 4GW, and a 1GW solar power plant in southern Syria. These projects are anticipated to supply more than 50% of Syria’s electricity demands, a staggering leap from the current generation of 1.6GW, which is a shadow of the pre-war capacity of 9.5GW.
The initiative is a bold step in revitalising Syria’s energy infrastructure, which has been ravaged by over a decade of conflict. The solar plant is slated for completion by 2027, with the gas plants following suit by 2028. This timeline is ambitious, but it reflects a sense of urgency and determination. Syrian Energy Minister Mohammed al-Bashir, speaking at the signing ceremony in Damascus, underscored the significance of this agreement. “This agreement marks a crucial step in Syria’s infrastructure recovery plan,” he stated, with Syrian President Ahmed al-Sharaa and US envoy for Syria Thomas Barrack in attendance. This is more than just a power deal; it’s a political statement, a signal that Syria is open for business and ready to rebuild.
The reconstruction of Syria’s power sector is estimated to cost $11 billion, and this MoU is a significant down payment. What’s notable here is the shift towards private sector investment, a departure from the state-led economic policies of the past. This is not just about rebuilding; it’s about rethinking Syria’s economic model. Regional and international banks will finance the projects, along with capital injection from partners, indicating a level of international confidence in Syria’s future.
UCC Holding CEO Ramez Al Khayyat painted a picture of economic revitalisation, highlighting the significant employment opportunities the projects will generate. With 50,000 direct and 250,000 indirect jobs expected to be created during the execution phase, these power plants could become engines of economic growth, driving Syria’s post-war recovery.
However, this news also raises questions. How will Syria balance its energy mix, given the environmental concerns surrounding gas power plants? How will it integrate renewable energy sources like the proposed solar plant? And perhaps most crucially, how will it ensure that this economic activity benefits all Syrians, not just the elite? This MoU is a starting point, not a finish line. It’s a spark that could ignite Syria’s energy sector, but the path forward is complex and fraught with challenges. The international community will be watching closely, hoping that this investment leads to a brighter, more sustainable future for Syria. The real test will be in the execution, in turning this MoU into a reality that powers Syria’s homes, businesses, and hopes.