The Energy Ministry has planned to increase the country's current electricity production capacity of 85,000 megawatts by 6,000 MW by next summer, which is unprecedented in the country's electricity industry, the energy minister said.
“The planned capacity includes 4,500 MW of thermal power plants and 500 MW of renewable power stations. An additional 1,000 MW will also be generated by upgrading the operating plants,” Ali Akbar Mehrabian was also quoted as saying by the Energy Ministry’s news portal Paven.
“Given the deficit in electricity production compared to the demand in the past summer, which led to power outages across the country, it was necessary to meet the shortages. So we have planned to build several thermal and renewable power plants, and upgrade the existing power plants to increase their production capacity in the next four years,” he said.
“The required budget for the projects will be provided by private investors, banks and the National Development Fund of Iran.”
Since September, four units with a total capacity of 800 MW have been synchronized to the network and more units will become operational in the coming months
The minister noted that since September, four units with a total capacity of 800 MW have been synchronized to the network and more units will become operational one after another in the coming months.
“The renewable stations will be of different types, including solar, wind and biomass plants. Iran’s first geothermal power station will become operational by the end of the current Iranian year [March 2022] in Meshkinshahr,” Mehrabian said.
First Geothermal Power Plant
The country’s first geothermal power plant is under construction near the city of Meshkinshahr in the northwest Ardabil Province.
Costing $9 million, the plant has a capacity of 50 megawatts but only “its first phase with 5 MW capacity will be launched this year”, he added.
Geothermal power is a renewable energy because its source is the unlimited amount of heat generated by the Earth's core.
Eleven wells have been drilled at the site near Meshkinshahr at a depth of up to 3,200 meters, seven of which will be used to generate electricity in the first phase.
At a geothermal power plant, wells are drilled between 1,500 and 3,500 meters deep into the Earth to pump steam or hot water to the surface. When the water reaches the surface, the pressure drops, which causes the water to turn into steam. The steam spins a turbine, which is connected to a generator that produces power.
The geothermal power plant in Meshkinshahr is located at the foot of the Sabalan Mountain. According to reports and based on discoveries made in the region, there is a potential to produce a minimum of 50 MW and a maximum of 500 MW of electricity around Sabalan, an inactive stratovolcano.
The plant in Meshkinshahr will be expanded to supply regions in Ardabil for domestic and industrial use.
The advantages of a geothermal plant compared to other renewable plants is that geothermal power plants generate electricity 24 hours a day irrespective of weather conditions, which results in greater stability and higher efficiency.
Besides producing electricity, the heat generated by such plants is used in industries and for heating.
Unlike thermal units that use fossil fuel, geothermal plants produce little emission. Carbon emission from geothermal power stations is less than 5% of conventional coal-fired plants.
The use of geothermal energy also eliminates the need for extractng, processing and transporting fuel required for electricity generation.
Geothermal reservoirs are replenished naturally and have massive potential for power generation. Iceland, the US, the Philippines, Japan, Germany, Turkey and New Zealand are among countries generating power from geothermal resources.
Global Geothermal Status
High capacity of geothermal power, coupled with its cost-effectiveness, is significantly driving the demand for geothermal power across the globe and bolstering market growth.
However, factors such as high investment required for geothermal power plants and the negative impact of geothermal energy on the environment are hampering the growth of geothermal power market. The presence of other viable renewable energy alternatives, especially solar, is also hindering the use of geothermal power to generate electricity.
The geothermal drilling market for power generation is expected to expand by 199.86 million at a CAGR of 5% during 2021-25.
The market is driven by factors such as rising demand for energy and the need for the efficient use of resources and reduction of emission. However, high capital requirements will hinder growth.
The volatility in oil prices and the rise in electricity prices will boost demand. On the other hand, increasing competition from alternative energy sources will challenge the growth of the market.
A total of $40 billion have been invested in geothermal energy development from 2010 to 2020 across the globe.
The US dominates installed geothermal capacity with 4 GW, followed by Indonesia, the Philippines, Turkey and Italy. Germany has 37 operational geothermal power plants, mostly in Bavaria, and has unveiled plans for a further 16 power and heating plants to be completed in the following years.
