Official: Iran’s power industry to go bust

Iran Materials 9 January 2012 14:39 (UTC +04:00)

Azerbaijan, Baku, Jan. 9 / Trend F.Milad/

Iran's Energy Ministry owes some 50 trillion rials (around $4.5 billion) to domestic manufacturers of power equipment, placing the industry on the verge of bankruptcy, the deputy chairman of Iran's Power Industry Union said.

"Such a large amount of debt has dramatically reduced productivity and profitability of power equipment manufacturers and could lead to vast blackouts across the country, Mohammad Kabiri added, the Pana news agency reported.

Meanwhile, an Iranian energy official announced on January 6 that Iran is currently exporting items and equipment related to water and power industries to South Africa, Armenia, Oman, Nigeria, Syria and Iraq,.

"Some 40 goods which are strategically important in the power industry are domestically produced and six others have been technologically enhanced" Mohsen Marjan-Mehr told the Mehr news agency.

Iran has reached self-sufficiency in producing equipment for its domestic electricity industry, an Iranian power generation transmission and distribution management company (TAVANIR) managing director said earlier this month.

"Iran is currently producing 64,000 megawatts of electricity per year. The country stands in fourteenth place worldwide in terms of electricity generation," Homayoun Haeri added, the IRNA news agency reported.