Iran to establish power plant on disputed island of Abu Musa

Business Materials 5 September 2014 15:45 (UTC +04:00)

Baku, Azerbaijan, Sept.5

By Fatih Karimov - Trend:

Iran will establish a power plant on Abu Musa Island which is the subject of dispute between Iran and the UAE.

Iranian deputy energy minister Houshang Falahatian said a 10MW power plant is being built by the private sector on Abu Musa.

The power plant will come on stream by the next 2-3 months, Iran's Mehr news agency quoted Falahatian as saying on September 5.

The islands of Abu Musa, Greater and Lesser Tunb, located in the Persian Gulf, are the subject of dispute between Iran and the UAE. Abu Musa, along with the two other islands, was taken over by Iran after British forces withdrew in 1971. It is claimed by both countries, but controlled by Iran.

Falahatian added that another power plant with 50MW output has been recently inaugurated in the Persian Gulf island of Qeshm.

Falahatian said on August 15 that Iran plans to export electricity to Abu Dhabi in the United Arab Emirates.

He added that talks are underway with the Persian Gulf states to export electricity, adding that a subsea transmission line is projected to be established in the Persian Gulf.

Power generation capacity in Iran has grown by 7 percent annually during the past 10 years. Iran is currently the biggest electricity producer in the Middle East, with total electricity generation currently at 70 gigawatts.

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 in investments for the construction of three new power plants.