An estimated 340 billion kilowatt hours of power was produced in 2020, up 13% or 40 billion kWh compared to a year ago.
According to data released by the sate-run Tavanir (Iran Power Generation, Distribution and Transmission Company), of the total approximately 80% or 272 billion kWh was thermal (steam, gas and combined-cycle).
Tavanir said 10 billion kilowatt hours was exported to neighbors, namely Iraq, Pakistan and Afghanistan in the last fiscal that ended on March 20, IRNA reported.
Under swap deals, Iran also exports electricity to neighboring Armenia and Azerbaijan in winter and imports when domestic demand soars in summer.
The agreements are in line with policies to increase power grid sustainability via joint ventures and synchronize the network with neighbors.
Tavanir said installed power capacity rose by at least 2,000 megawatts last year to reach 85,000 MW.
Company data indicate that five new gas-powered thermal stations and combined-cycled plants in Kermanshah, Tehran, North Khorasan, Bushehr and Mazandaran provinces added 685 MW and 990 MW, respectively, to national production.
Moreover, companies with distributed generation systems, renewables and hydropower plants added 270 MW, 53 MW and 2 MW to Tavanir’s power output, respectively.
Referring to projects underway, the state news agency said four steam units in Heris Combined-Cycle Plant (East Azarbaijan), Jahrom Power Plant in Fars Province, Urmia Power Station (East Azarbaijan) and Chabahar Power Plant in Sistan-Baluchestan Province will come on stream by July.
Moving to steam power is part of the government policy to convert simple-cycle plants into combined-cycle units to boost efficiency.
Moreover, the second gas unit in Zarand Thermal Power Plant in the namesake county in Kerman Province and Hengam Power Plant in Bandar Abbas, in southern Hormozgan Province, are expected to come on stream.
Upon completion, the $1.1 billion projects will add at least 1,700 MW to the national grid. Thermal power plants account for 80% of Iran’s total power (85,000 MW). Steam, gas and combined-cycle plants constitute 19 gigawatts, 25 GW and 23 GW of thermal output, respectively.
Of the total thermal output (67 gigawatts), 25 GW is produced by gas-powered facilities that have efficiency levels below 32%.
According to Mohsen Tarztalab, the chief executive officer of Iran’s Thermal Power Plants Holding Company, with installed capacity at 67 GW, Iran is ninth in global thermal power capacity.
Close to 21 GW comes from facilities built more than three decades ago and should be either phased out or renovated. The estimated useful life of an electricity plant is 20 years.
“To rehabilitate the old units TPPHC requires at least $3 billion a year,” the CEO said.
A part of the high cost can be met by borrowing from the National Development Fund of Iran, the sovereign wealth fund. However, experience shows power plant operators have been unable to meet their financial commitments on time reportedly due to high costs, low income and the ubiquitous currency rate volatility.
