Iranian electricity industry suffers heavy losses, low efficiency of power plants

Business Materials 27 October 2014 15:48 (UTC +04:00)

Tehran, Iran, Oct. 27

By Milad Fashtami - Trend:

Head of The Energy Commission of Iran's Parliament (Majlis) Ali Marvi said that the efficiency of Iranian power plants is only 37 percent, while the figure stands at 80 percent in developed countries.

"Transmission and distribution losses amount to 15 percent in Iran," he said, Iran's Fars News Agency reported on Oct. 27.

"The global average is around 10 percent," he added, noting that the energy ministry needs to find solutions to reduce the figure.

Marvi went on to note that by increasing the power plants' efficiency, Iran would annually save 11 billion liters of liquid fuel, worth 4 billion euros.

He went on to note that the country's production would account for 15 percent of the Middle East's total electricity generation by the end of 2015.

"The region's total production capacity is expected to surpass 1,580 terawatt," the MP said.

Marvi also said that the energy ministry needs to double the country's production and transmission capacity every nine years.

The official further called on Iranians to reduce their gas and electricity consumption.

"By reducing electricity consumption by 20 percent, annually some 9,000 megawatt worth 9 billion euros would be saved, and Carbon dioxide emission would also be reduced by 30 million metric tons per year," he said.

"By reducing gas consumption by 10 percent also the country would be able to save a huge amount of gas equal to the annual production of two phases of South Pars gas field," Marvi added.

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.

The country's production capacity has surpassed 70,000 megawatt (263 billion Kwh).

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