Due to the Russia-Ukraine conflict, Russian power generation equipment suppliers have asked Thermal Power Plants Holding Company to use Chinese products in completing Sirik Power Plant in Sirik County, Hormozgan Province, the managing director of TPPHC said.
“Despite their request, we are intent on drawing on domestic firms’ capability and experience unless they cannot manufacture specific equipment,” Barq News website also quoted Abdolrasoul Pishahang as saying.
The first priority of TPPHC is to conclude contracts with domestic suppliers and negotiations are underway to finalize the details, he added.
“Owing to the war, Russia has not settled its debts to manufacturing factories and they are not willing to fulfill their commitments in the project, which explains their recommendation that Iran collaborate with Chinese producers,” he said.
Russia and Iran signed agreements for the construction of the plant in 2016 and the groundbreaking ceremony was held in 2017. However, the construction process was delayed as the Russian side did not provide the loan to fund 85% of the construction costs that is estimated to be $1.7 billion.
The power plant comprises four units, each with a capacity of 350 megawatts.
Local companies and manufacturers will supply the lion’s share of required parts and equipment for the construction project.
The project is considered a key step toward stabilizing the electricity network in the country’s underprivileged southern and southeastern regions.
Sirik County overlooks the Strait of Hormuz, between the Persian Gulf and the Sea of Oman.
Installed Capacity
Thermal power plants in Hormozgan Province have an installed capacity of over 3,000 MW and will increase output to 7,000 MW by 2024.
The construction of the station will create 3,000 jobs and 500 more will be employed when the first unit comes on stream.
TPPHC is responsible for organizing government activities in thermal power generation by planning, developing, managing and operating power plants based on the Energy Ministry’s policies.
“An estimated 351 billion kilowatt-hours of power were generated in thermal power stations between July 2021 and June 2022,” he said.
“The massive output, indicating a 7% growth compared to a year ago, accounted for 95% of total electricity produced in Iran last year.”
According to Pishahang, as long as the construction of new thermal power plants in the country is not complete, the aging gas and steam units cannot be phased out.
Referring to the widening gap between power supply and demand that stood at 20,000 MW in the summer, the official said the company has to use 40-year-old facilities, otherwise electricity supply to large cities will be disrupted.
“Tarasht Thermal Power Plant west of Tehran and the Rey and Besat stations in the south meet 90% of the total power need in the province,” he said.
“Old power plants are saddled with problems, such as high water consumption and low efficiency. However, putting them out of service is impossible because doing so will cause chronic outages.”
According to the official, the construction of a 230-kilovolt gas-insulated substation has started at the Rey plant as the first step to phase out the 50-year-old station, but building the entire unit needs minimum three years, before which the old units must keep functioning, irrespective of their low efficiency.
The three facilities in Tehran have been operating for more than five decades, while the estimated useful life of an electricity plant is around 20 years.
