The production capacity of small-scale power plants with distributed generation system has reached a record high of 1,100 megawatts at the peak of consumption this summer, managing director of Iran Grid Management Company said.
“The share of small-scale power stations in the country's electricity production is 2%,” IRNA also quoted Mostafa Rajabi-Mashhadi as saying.
“These power plants are scattered across the country. The construction of such facilities is economically justifiable, especially in the underprivileged regions,” he added.
Currently, Tehran, Isfahan and Mazandaran provinces have the most installed small-scale units (with a maximum capacity of 25 MW) among the 31 provinces.
The official noted that the advantages of DG systems include reducing losses in the transmission and distribution networks, eliminating the need for transmission network, the simultaneous generation of electricity and heat, and lowering the emission of hazardous pollutants.
DG or on-site generation is electricity produced in small quantities near the point of use, as alternative or supplement to traditional centralized grid-connected power.
It reduces the cost and complexity associated with transmission and distribution, while helping offset peak electricity demand and stabilizing the national grid.
As the Energy Ministry's plan is to put an end to building costly and conventional power plants, the construction of distributed generation plants has now become a priority.
Tehran and Sistan-Baluchestan provinces have the highest (370 MG) and lowest (10 MW) DG capacities, respectively.
The Energy Ministry buys electricity under a guaranteed five-year purchase scheme. To encourage investors in summer when consumption peaks, each kilowatt hour of electricity produced via DG power plants is purchased at a rate eight times higher than the tariff for power produced in thermal stations.
One kilowatt-hour of power is bought at less than one cent from thermal power plant owners.
Power from distributed generation has a wide range of application like supplying electricity to remote rural areas, providing backup to customers in the event of grid failure and supporting power during peak demand to help reduce network load.
