Work on the Iran-Armenia third power transmission line continues and has not been hampered by the spread of the coronavirus that has undermined many businesses, Armenia’s ambassador to Iran said Monday.
“Programs are in place to send 60 Iranian experts to Armenia to continue with the project,” Artashes Tumanyan said.
He said Iran wants to complete the project that entails construction of a 400-kV power transmission line and a 400-kV Substation, IRNA reported.
Referring to the cooperation between the two countries, he said: "Iran's exports to Armenia continue as before."
Armenia imports polymer raw materials, petrochemicals, iron and steel, tiles and ceramics, fruit and nuts, machinery, manufactured artifacts, leather, leather goods and natural gas from Iran.
Armenia’s Minister of Territorial Administration and Infrastructure Suren Papikyan had said earlier that the project would allow his country to boost the potential of electricity transit.
According to Papikyan, power transit potential will increase not only with Iran, but also with Georgia, Russia and member nations of the Eurasian Economic Union.
Construction of the high-voltage transmission line is expected to be complete by 2021.
This line is designed to boost Armenian electricity export to Iran that is paid for with natural gas via a 140km gas pipeline.
Iran has made known that its gas export capacity to Armenia can increase further in the bilateral barter trade system.
Iran Power and Water Equipment and Service Export Company (SUNIR) is the contractor of the third line project that is estimated to cost $121 million.
Iran and Armenia have been cooperating for years in gas and electricity swap. Two-way economic and political ties have grown in tandem with trade expansion.
Iran and Armenia have been cooperating for years in gas and electricity swap. Two-way economic and political ties have grown in tandem with trade expansion
Based on a contract signed in 2004, Iran sells gas to Armenia and in exchange imports electricity in summers when consumption rises. Iran's natural gas is used by the republic to generate electricity that is exported to Iran.
Tehran receives 3.2 kilowatt-hours of electricity from Yerevan in exchange for 1 cubic meter of natural gas.
Armenia is interested in boosting natural gas import from Iran and receiving up to 600,000 cubic meters more of the clean fuel from the current one million cubic meters per day.
The third power line is planned to expand the corridor for electricity exchange between Armenia and Iran by three times.
Armenia exports 350 megawatts of electricity to Iran per year now. With the completion of the third line, this would exceed 1 gigawatt. Moreover, expansion of the line is necessary to synchronize Iran’s power grid with that of Georgia and Russia.
Power plants across the country has an installed capacity to generate 84,000 megawatts of electricity on a daily basis.
The new 279-km power line will further strengthen trade between the two countries. It also will help Iran's national power grid to link up with the power grids of Georgia, Turkey, and Russia through Armenia.
Iran is the largest exporter and importer of electricity in the Middle East. It trades electricity with two neighbors on its northwestern borders, namely the Republic of Azerbaijan and Armenia.
Under swap deals, Iran exports power to Armenia and Azerbaijan in winter and imports in summer. It also exports power to Turkey and Iraq.
