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Russia to invest $10 billion in Iran’s thermal power plants

Business Materials 9 September 2014 14:45 (UTC +04:00)

Tehran, Iran, Sept. 9

By Milad Fashtami - Trend:

Iranian Energy Minister Hamid Chitchian said Russia plans to invest $10 billion in construction of eight new thermal power plants in Iran.

The plants' total production capacity would be 2,800 megawatt (350 megawatt each)," he said, Iran's IRNA News Agency reported on Sept. 9.

"Four of the mentioned power plants will be constructed in the southern city of Bandar Abbas, two others in the central city of Tabas, and the remaining two in the western city of Sahand New City," Chitchian said, adding that the environmental studies are underway to construct two power plants in northwestern Tabrizcity.

According to the Iranian minister, Russia companies will carry out renovation operations in Ahvaz's Ramin power plant and Isfahan's Shahid Montazer power plant.

Chitchian made the remarks in a press conference after his meeting with his Russian counterpart Alexander Novak.

Novak said his country plans to do renovation operations in four Iranian power plants in cooperation with Iran Power Generation Transmission & Distribution Management Company (TAVANIR). He went on to note that U.S.-generated sanctions will have no effect on the two countries' cooperation in the field of energy.

Novak is in Tehran for an official visit at the invitation of Iranian oil ministry, Iran's IRNA News Agency reported on Sept. 9.

Novak has previously visited Tehran in April. During his visit, the Russian minister held a meeting with Iranian President Hassan Rouhani.

The two sides held talks on signing an agreement worth $ 8-10 billion in the energy sector during a former visit of Novak to Tehran in April. Novak and Chitchian discussed the transit of electricity between the two countries during that meeting.

The Russian minister said the power grids of Iran, Russia and Azerbaijan Republic are to be connected to that effect. The three neighboring countries are currently working to draft an agreement over the transit of electricity soon, according to the Russian official.

In a meeting with Novak on April 26, Iranian Ambassador to Moscow Mehdi Sanaei expressed Tehran's willingness to purchase electricity from Russia, and use the country's assistance in the construction of thermal power plants and renovation of two power stations in central and southwestern Iran.

Russia also plans to construct a number of nuclear plants in Iran.

The Head of Iran's Atomic Energy Organization (AEOI) Ali Akbar Salehi said in June that Iran has reached an agreement with Russia to construct two more nuclear power plants.

"The two sides are negotiating over the six other plants planned," he explained.

Tehran is reportedly negotiating with Moscow over construction of eight nuclear reactors.

Iran's ISNA News Agency on May 25 quoted an unnamed official as saying that Iran and Russia have agreed over a nuclear protocol for construction of new nuclear reactors.

"If the two sides sign the agreement, Iran will officially be able to construct the new reactors," the source said. The source went on to note that the two countries have already agreed over construction of two power reactors.

Salehi said on April 13 that the country has a contract with Russia which obligates Moscow to build four other nuclear power plants in the country. Based on a contract which was signed in 1992, Russia is supposed to construct the power plants at the request of Tehran. He also said that Iran will start construction of its second nuclear plant this year.

"Two years from now we will start the construction operation of the third plant, he explained, adding that the country will continue building next ones every two years.

"We plan to use local experts in construction of the plants as much as possible," Salehi said.

"Before the Islamic revolution [in 1979] the Americans said that Iran needs to annually produce 20,000 megawatt hours of nuclear electricity. Now we want to reach the goal," he noted.

Edited by CN

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