The Ministry of Energy owes $80 million to combined heat and power plants this year, the head of Iran CHP Association said.
Small-scale power plants are among the cheapest sources of electricity the and built by private companies with little dependence on public resources or the National Development Fund of Iran, Mehr News Agency quoted Ehsan Sadr as saying.
The government is struggling with budgetary constraints for years and “is unable to build big and costly power plants. Instead the private sector has risen to the occasion” and has invested in small-scale power plants to help meet rising demand, he noted.
Small-scale plants, known as standalone or off-the-grid systems, can be used in remote areas where it is difficult to extend power lines.
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