As per the deal, ABB will design and supply the substations, which will be based on GIS technology.

Two will be connected with 132kV underground cables due to the lack of space for overhead lines.

ABB will also supply circuit breakers, air-insulated switchgear, control and protection systems, capacitor banks, power transformers and other high-voltage equipment.

The project is expected to be completed in 2014.

ABB’s Substations business head within the company’s power systems division Oleg Aleinikov said the substations will help the region meet its increasing demand for electricity.

"They will also strengthen the grid, reduce outages and improve the reliability of power supplies to consumers," Aleinikov added.

The Kurdistan power grid currently supplies about 2,750MW of electricity with over 90% of the capacity owned and operated by independent power firms.

ABB said the increasing demand for electricity means that outages and blackouts are frequent and in the short term, a capacity expansion to about 4,000MW is planned, while in longer term it is expected to reach 10,000MW.