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Power Production Capacity to Rise by 6,000 MW Next Summer

In less than a year, about 3,000 MW from power plant units run by TPPHC and 1,400 MW from units managed by industries are to become operational across the country

Plans have been prepared to increase the power production capacity across the country until next summer when consumption will rise similar to previous years, director general of the planning office at the Thermal Power Plant Holding Company said.

“About 6,000 megawatts are expected to be added to the electricity generation capacity in Iran [currently at 86,000 MW] in less than a year to meet rising demand in the country,” Hadi Modaqeq was also quoted as saying by the Energy Ministry’s news portal Paven.

“During this period, about 3,000 MW from new power plant units will be made operational by TPPHC,” he added.

Referring to a memorandum of understanding signed last year between the Energy Ministry and the Ministry of Industries, Mining and Trade for the construction of a power plant by industries, he said, “Based on the deal, 1,400 MW from power plant units will be set up by the summer peak season of next year.”

According to the MoU, 10,000 MW of power stations were initially decided to be constructed by industries. 

However, the figure later increased to 17,000 MW, which will be constructed in 15 provinces.

According to the MoU, 24 power plants are to be built in 36 months and their electricity will be supplied to industries and mines.

This year, the first gas unit of Shahid Bakeri Power Plant in Semnan Province with a capacity of 183 megawatts was connected to the national power grid. It was the first unit constructed with the investment of industries.

The power plant of Mobarakeh Steel Company in Isfahan Province is the next power station that will come on stream as per the MoU.

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 state-run Iran Power Generation, Distribution and Transmission Company. This way, they will be enabled 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 the state-run utility company could not produce sufficient electricity.

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.

 

 

Renewables and DG Systems

Modaqeq noted that about 850 MW are also expected from renewable power stations to become operational by next summer.

Currently, less than 1,000 MW are derived from renewable sources, such as solar, wind, small-scale hydroelectric and waste-to-energy power plants and biomass factories.

The new projects will help almost double the production of renewable energy in the country.

Renewable energy is the least expensive option for improving access to electricity, reducing air pollution and cutting CO2 emissions. 

Renewables can help transform unsustainable production and consumption patterns, protect biodiversity, reverse deforestation and combat land degradation.

Investment by private firms in the sector has surpassed $1.1 billion, mostly in solar power projects.

In addition, about 290 MW of power plants with distributed generation system (small power plants with a capacity below 25 MW) will be put into operation.

Power from DG systems has a wide range of application like supplying electricity to remote rural areas, providing back-up to customers in the event of grid failure and supporting power during peak demand to help reduce network load. 

DG systems also fulfil key requirements in an optimized electricity system, namely security, improved efficiency, high system reliability, affordable energy cost and low environmental impacts.

Modaqeq said the program to repair and upgrade power plants will also help add 490 MW to their capacity.

Operations to repair and overhaul thermal power plants started in September and will end next May. A total of 583 gas and steam units in 129 power plants will be ready by June to help ensure sustainable supply during peak demand.

THPCC oversees dozens of fossil fuel power plants with an installed capacity of over 68,000 MW, which form the bulk of Iran's electricity demand.