Iran plans to invest $50 bln in power sector over seven years

Business Materials 22 February 2014 12:32

Baku, Azerbaijan, Feb.22

By Fatih Karimov - Trend: Iran plans to invest some $50 billion in its power generation and transmission projects over the next seven years, the Mehr News Agency quoted Deputy Energy Minister Houshang Falahatian as saying on February 22.

A comprehensive outlook plan has been developed to diversify power generation methods using thermal, wind, combined cycle, and solar power plants, Falahatian added.

Currently, over 90 percent of the country's needed power industry equipments are manufactured domestically, the minister said.

On Feb. 10, Falahatian said the production capacity of Iran's power plants does not meet domestic demands.

"The country's electricity generation capacity currently stands at 70,000 megawatt hours, but it's not enough," Falahatian said.

"Electricity consumption peak is currently around 46,300 megawatt hours, but if the current trend continues the figure can reach 50,000 megawatt hours," Falahatian explained.

The deputy energy minister made the remarks at the inauguration ceremony of the country's first small-scale power plant in Western province of Zanjan.

Managing Director of West Region Power Company Abdolaziz Karimi said on January 25 that Iran's electricity consumption will reach 51,000 megawatt hours in the next Iranian calendar year (to start on March 21), Iran's IRNA News Agency reported on January 26.

"The figure is expected to reach 54,500 megawatt hours in the Iranian calendar year of 1394 (to start on March 21, 2015)," Karimi said.

Karimi went on to note that Iran's electricity consumption currently stands at 46,000 megawatt hours.

"It is while the figure was around 43,000 megawatt hours in the previous year," Karimi said, adding that the rising consumption trend in the country is alarming.

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

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