The state-run Power Generation, Distribution and Transmission Company’s (Tavanir) is to sign contracts with industry owners to shift consumption from peak (11 pm to 7 am) to off-peak hours, head of the company said.
“The measure was a success in summer and the same approach should be adopted in winter to avoid power cuts,” Mohammad Hassan Motavalizadeh said, IRNA reported.
Drawing parallels with last winter, he noted that daily power consumption has risen 5% (40 million kilowatt hours/d) to 840 million kilowatt hours.
Of the total increase 3% is by industries with their outdated equipment taking a toll on the national power grid, Motavalizadeh said. “If they (industries) shift consumption to non-peak hours close to 50,000 kilowatt hours of power can be saved per day and help curb sporadic power outages.”
According to the official, unlike last winter when demand was less than 800 million kWh per day, between November 2020 and January 2021, consumption jumped 5% and Tavanir had to generate 840 million kWh on a daily basis. “That was a challenge as some thermal power stations are disconnected due to the routine overhaul. Moreover, we are under pressure not to burn liquefied fuel and this is while gas delivery to power plants has been cut by 40% compared to summer.”
Before Nov.2020, mazut (4%) and diesel (16%) accounted for 20% of power plants feedstock and the balance (80%) was gas. In the last two months the equation has changed and use of mazut and diesel has more than doubled as gas delivery to power stations has halved, he noted.
“Power plants can generate 1.3 billion kWh per day (as in summer) on condition that they receive fuel” without disruptions.
Tavanir’s annual power generation capacity is around 300 billion kilowatt hours of which 10 billion kWh is exported to Pakistan, Afghanistan and Iraq.
Steady Expansion
The Tavanir boss said electricity consumption growth jumps between 5 to 7% a year, and to meet rising demand power infrastructure (generation and transmission) should expand in tandem.
“Expanding thermal plants, hydroelectric dams, nuclear power plants, wind turbines, solar panels as well as transmission and distribution lines and substations needs at least $4 billion a year.”
It is obvious that attracting funds of this type is far beyond Tavanir’s ability, he concurred.
Not wanting to disguise challenges the huge utility is facing, he said tapping into government finances is beside the point as the Rouhani administration is struggling with budget deficits due to low international crude prices plus its inability to collect its own money from crude oil exports due to the US sanctions.
Despite the fact that private firms have added at least 13,000 megawatts to national production in the past 40 years, drawing on private sector potential to fund power projects is unlikely, he noted.
According to Motavalizadeh, the pattern of chaos and instability in the currency market plus the Energy Ministry's refusal to pay reasonable rates for electricity produced by private companies are the main reasons private enterprise is unwilling and unable to invest in the hugely subsidized industry.
“Under the circumstances, the best and only practical solution to meet growing demand is to convince the people” to use less power and abide by the call of wisdom.
