Prime Minister Mohammed Shia al-Sudani oversaw "the signing of a Memorandum of Understanding as part of a strategic cooperation framework with GE Vernova", his office said in a statement.

"The MoU covers projects to establish combined-cycle gas power plants with a total capacity of approximately 24,000 megawatts," it said.

It marks "the largest and most advanced electricity generation initiative in Iraq's history," the statement said, adding that it "also includes provisions for securing external financing through major global banks".

The signing comes at the conclusion of a visit to Iraq by a high-level US delegation comprising of representatives from 60 private firms.

Despite sitting on large reserves of petrol and natural gas, decades of conflict and instability have ravaged Iraq's energy infrastructure.

The country frequently suffers from long power cuts, particularly during the searing summer months, when temperatures often surpass 50 degrees Celsius (122 Fahrenheit).

To avoid power cuts, Iraq needs to boost its energy grid with an additional 55,000 megawatts during peak hours.

With production currently standing at just 16,000 megawatts, the energy ministry hopes to exceed 27,000 megawatts this year.

The deal also comes as Iraq seeks to diversify its energy sources away from dependence on its powerful neighbour Iran.

The US administration has told Baghdad that it expects "rapid progress" in eliminating "all purchases of natural gas" from Iran.

On March 8, Washington did not renew a waiver on sanctions that Iraq previously benefited from to purchase Iranian energy.

"The Iraqi government has drawn up plans to guarantee its energy independence and meet the population's demand for stable, uninterrupted electricity," Farhad Alaaldin, the prime minister's advisor on foreign affairs, told AFP.

The new partnership signed Wednesday "underscores the enduring relationship" between Baghdad and American companies, he said, adding that it is "capable of providing the expertise and services Iraq needs".

"Iraq is a land of opportunity for major companies to operate and invest in," he said.