The $150m plant, comprising two turbines of 160MW each, is located on a 25 acre site in Sadr City.
The new turbines that run on natural gas or gasoil bring the total capacity of the plant to 640MW.
SunirVice President Amir Anvari said the company is in negotiations with the ministry to install a natural gas pipeline between Iran and Iraq to feed the Sadr City power station and another in northern Baghdad.
