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Iran’s electricity industry to face $1.34B negative trade balance

Business Materials 16 January 2015 17:44 (UTC +04:00)

Tehran, Iran, Jan. 16

By Milad Fashtami - Trend:

Iranian Energy Minister Hamid Chitchian said that the electricity industry would face some 35.588 trillion rials (some $1.34 billion based on the official exchange rate of US dollar) of negative trade balance in the current Iranian calendar year, started on March 21, 2014.

"The average production price of electricity in Iran is around 700 rials per kilowatt hour, but the average sales price is around 500 rials per kilowatt hour," he said, Iran's Fars News Agency reported on Jan. 16.

"Converting 16,000 megawatts of gas power plants to combined cycle plants is among the top priorities of the energy ministry," he said.

"By doing so Iran can save up to 100 trillion rials (some $3.77 billion based on the official exchange rate of US dollar) each year," he said.

The minister went on to note that the electricity industry's debts amount to 240 trillion rials (some $9.05 billion based on the official exchange rate of US dollar).

Deputy Iranian Energy Minister Houshang Falahatian said on Dec. 8 that Iran's power consumption rises by 7 percent annually, so the country needs to add 5,000 megawatt to its power plants' production capacity each year.

"Iran needs to double its electricity generation capacity every 10 years," he said.

The official went on to note that the ministry plans to annually construct some renewable energy production units with the capacity to produce 1,000 megawatt of electricity.

"We also plan to annually convert several gas power plants with the total production capacity of 17,000 megawatt to combined cycle plants," he explained.

Iran seeks to become a major regional exporter of electricity and has attracted more than $1.1 billion in investments for the construction of three new power plants.

Iran currently trades power with Turkey, Armenia, Turkmenistan, Azerbaijan, Pakistan, Afghanistan, Syria, and Iraq.

Edited by CN

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