Iran and Armenia explored grounds to boost collaboration in the energy sector in a meeting Monday between the visiting Economy Minister of Armenia Vahan Kerobyan, and Energy Minister Reza Ardakanian in Tehran.
The two sides discussed ways to expand cooperation in the electricity sector and combating Aras River pollution, the Energy Ministry news portal reported, adding that the importance of completing a third power transmission line between the two neighbors was highlighted.
Armenia and Iran exchange 350 megawatts of electricity via to power lines. Upon completion of the third line in March, the capacity will reach 1,000 megawatts, Kerobyan said.
The new line is designed to increase Armenian electricity export to Iran bartered with natural gas.
“Gas supply from Iran to Armenia can increase and negotiations will continue to increase it in exchange for goods,” the Armenian minister said.
Based on a contract signed in 2004, Iran supplies gas to Armenia and imports electricity in exchange. The gas is used by Armenian power plants 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 gas. Armenia wants to increase gas import by an additional 600,000 cubic meters from the current 1 million cubic meters per day.
"The energy corridor is important and the new electricity line will have a profound effect on the two states' trade ties," Ardakanian said, and added that the power line is part of an agreement between Iran, Russia, Armenia and Georgia to synchronize their power grids.
The two sides also discussed Aras River’s pollution problem caused by sewage from Armenian power plants and aluminum factories. The river straddles the two borders and its pollution poses serious health risks to people living in northwestern Iran, particularly in the Moghan Plain in Ardabil Province.
In 2019 Iranian exports to the neighbor reached $330 million, 29% and 20% of which pertained to oil products and cement respectively, respectively. Other exports were iron, steel and plastic products, fruit and vegetables, tiles and ceramics, construction glass, chemicals and fertilizers.
