Contracts for constructing power plants with a capacity of 5,000 megawatts have been signed, director of the Infrastructure Department at the Iranian Mines and Mining Industries Development and Renovation Organization said.
“Shahid Bakeri Power Plant in Semnan Province is the first project based on the MoU, which will be launched by mid-summer with a production capacity of 380 MW of electricity,” Manijeh Gholamrezaei was also quoted as saying by Mehr News Agency.
The contracts are based on a memorandum of understanding to build 10,000 MW of power stations inside industrial and mining complexes.
“According to the MoU concluded between the Energy Ministry and the Ministry of Industries, Mining and Trade, 24 power plants are to be built in 14 provinces in 36 months and their electricity will be supplied to industries and mines,” she added.
The official further said the power plant of Mobarakeh Steel Company in Isfahan Province is the next power station that will come on stream as per the MoU.
Gholamrezaei pointed out that 30% of the country's electricity are consumed by industrial and mining sectors.
“About 20,000 MW are allocated to the two sectors,” she said.
Shahid Bakeri Power Plant is the first to be constructed with the investment of industries.
In the first phase, the two gas units of the plant with a capacity of 183 MW each will be connected to the network soon.
In the second phase, with the construction of a steam unit, the plant will become a combined-cycle one.
Usually, one-third of the capacity of combined-cycle power stations is dedicated to steam units, which will be built next to the gas units and no longer require fuel as feedstock.
Last year, the engineering and energy giant MAPNA Group signed a deal with Mines and Metals Development Investment Company to develop the combined-cycle power plant in Semnan.
The deal stipulates the design, engineering, procurement, installation and commissioning of two advanced gas units equipped with MAPNA’s own E-Class MGT-70(3) gas turbines.
The new plant, built by MAPNA Group next to Semnan Thermal Power Plant, comprises two gas units with a capacity of 162 MW each (totaling 324 MW). It has been in operation since 2010.
MAPNA is a conglomerate of Iranian companies involved in the development and execution of thermal and renewable power plants, oil and gas facilities, railroads and other industrial projects as well as the manufacture of equipment.
Key Role
Industries can play a key role in boosting electricity output by embarking on power plant development projects, in which case they will no longer be at the mercy of the government. This will enable them to use their own power generating plants and not be dependent on the national power grid.
In fact, industries account for 40% of Iran’s annual power consumption of 280 billion kilowatt hours.
Mining and manufacturing industries were negatively affected by the power supply crisis last summer, as they were forced to halt operations repeatedly in June and July because of lack of sufficient electricity in the country.
When heavy industrial customers are equipped with their own power stations, they will not need to stop their business in summer when demand exceeds supply.
If industries complete their power projects, the Energy Ministry guarantees that adequate power will be supplied to factories even during peak demand hours, regardless of households’ consumption level.
All industrial units that consume more than 2 megawatts of electricity per month are charged 2.5 cents per kilowatt hour.
As per the new bill passed by the Majlis last year, electricity tariffs for energy-intensive industries, namely cement factories, oil refineries and petrochemical and steel companies, have increased fivefold since March.
