Suspending power supply to neighboring countries to help stabilize the grid during peak hours is a wrong approach, managing director of MAPNA, the engineering and energy giant, said.
“Exports of electricity and techno-engineering services to Iraq, Afghanistan and Pakistan are of great importance and the Energy Ministry should rewrite its policy in this regard,” Abbas Aliabadi was also quoted as saying by IRNA.
Iran Power Generation, Distribution and Transmission Company (Tavanir) generates close to 65,000 megawatts of power, of which 3% are exported, he added.
Aliabadi noted that the sale of 2,000 MW of power covers 50% of Tavanir’s expenses and the doubling of exports will help meet all the Energy Ministry’s costs.
“On the other hand, an interruption to exports would deprive Tavanir of foreign revenues and will add to its financial difficulties,” he said.
The official believes that instead of restricting exports, power generation capacity should be boosted by giving priority to renewable energy development projects as such initiatives have been neglected.
MAPNA has indigenized 2.5-megawatt wind turbines, which rotate at a minimum speed of 3.5 revolutions per second. Its next generation turbine with a capacity of 5 MW will be unveiled soon.
The conglomerate oversees several Iranian companies involved in the development and execution of thermal and renewable power, oil and gas, railroad transportation and other industrial projects as well as manufacturing equipment.
MAPNA plays a key role in upgrading Iran's power industry that grappled with a lack of investment and technology when economic restrictions were in place. It also implements the power projects of Iraq, Syria, Pakistan, Oman and Indonesia, among other markets.
F-Class Turbines
Referring to MAPNA’s hydrogen-fueled gas turbines (MGT-75), Aliabadi said the first F-class turbine has been dispatched to Sahand Power Plant in East Azarbaijan Province and will be installed in the near future.
"MGT-75 is an industrial accomplishment and one of the best-in-class turbines in the world. The next generation MGT-70 turbines allow expansion of power production without spending massive amounts on new units," he added.
The addition of hydrogen to natural gas is a major step toward decarbonizing energy production as its combustion process emits less greenhouse gases, including CO2. It also produces more energy.
The fourth upgrade to the MGT-70 turbine has improved efficiency by 24% to 60% over the previous design.
The MAPNA chief said most turbines used in Iran’s power stations are from the E-class family and can be upgraded to MGT-75 for improved efficiency.
“We take hydrogen, which is a clean fuel, from renewable power plants, and use it in the turbines, which increase the installed capacity by 70 megawatts,” he added.
While the reduction of carbon emissions from traditional power stations is driving the rise in power production from renewables, hydrogen-fueled gas turbines can also play an important role.
Combined Cycle Plants
Aliabadi stressed that the conversion of all single-cycle power plants in Iran into combined cycles can help save 11 billion cubic meters of natural gas per annum worth $2 billion and help curb the emission of greenhouse gases.
Combined cycles will increase the efficiency of power plants from 30% to 50% and add 12,600 megawatts to the grid's capacity [equal to electricity produced in six big power stations].
A combined cycle power plant uses both gas and steam turbines to produce up to 50% more electricity from the same fuel than a traditional simple cycle plant. The heat from the gas turbine is sent to a nearby steam turbine that also generates electricity.
MAPNA is capable of manufacturing and installing steam turbines to change single-cycle into eco-friendly combined ones in five years, if the government were to fulfill its financial pledges, the CEO said.
Aliabadi announced that his company has built combined-cycle plants with a capacity of 20,000 MW, one of which is the Damavand power plant in southeast Tehran.
The efficiency and output of a combined-cycle plant distinguish it from others because of the increased power generation and lower emissions.
Combined-cycle plants produce almost 30% more power for approximately the same fuel cost.
Power Tariffs
The official noted that as long as power tariffs are low, electricity will be deemed a low-value commodity, so raising tariffs is imperative to remedy Iran's power sector that is beset by excessive consumption and lower investments.
Power generation in Iran costs at least 3 cents per kilowatt-hour, but consumers are charged less than 1 cent per kWh.
Electricity tariffs should be increased gradually and as per national regulations, the financial status of households with low income should be taken into account.
Experts believe that raising power prices by the government, which runs most public facilities, could initially trigger a public backlash but will help correct the profligate consumption pattern in the long run.
On underinvestment in power industries, Aliabadi stressed that the sector has dilapidated infrastructures, therefore Iran must find ways to attract investments.