Purpose: This study aims to identify and analyze the key challenges associated with electricity generation in gas power plants in southern Iraq. Given the critical role of electricity in the socio-economic development of developing countries and Iraq’s particular challenges in energy supply, the research seeks to determine and prioritize the main factors contributing to inefficiencies in power generation.

Method: To achieve the research objectives, expert interviews were initially conducted to extract the primary challenges. Subsequently, the Pythagorean fuzzy DEMATEL (Decision-Making Trial and Evaluation Laboratory) technique was applied to examine causal relationships among the factors and to assess the degree of influence and dependence of each. Data were collected through specialized questionnaires and analyzed using multi-criteria decision-making methods under conditions of uncertainty.

Findings: The analysis revealed that, among the 19 identified challenges, the most influential factors include the lack of renewable energy technologies, absence of modern operation and maintenance systems, and deteriorated infrastructure and reliance on outdated technologies. In addition, challenges such as shortage of high-quality natural gas fuel, financial constraints, and lack of foreign investment significantly exacerbate the inefficiencies in electricity production.

Conclusion: The findings indicate that the electricity generation crisis in Iraq is systemic and multidimensional in nature. Addressing it requires a holistic approach that involves infrastructure modernization, development of advanced technologies, enhancement of financial management, and attraction of foreign investment. It is recommended that policymakers prioritize root-cause factors and implement structural reforms to pave the way for sustainable energy development in the country.