Generating electricity with the help of industry-funded power stations is more financially viable for industrialists compared to purchasing power from the Iran Power Generation, Distribution and Transmission Company (Tavanir), the energy minister said.
“Purchasing power from Tavanir costs industries at least 2.5 cents per kilowatt, but producing the same volume of electricity in their own power stations will cost them less than 1 cent that is more economically justifiable,” Ali Akbar Mehrabian was also quoted as saying by the Energy Ministry’s news service.
As per the new bill passed by Majlis last year, electricity tariffs for energy-intensive industries, namely cement factories, oil refineries and petrochemical and steel companies, have increased fivefold since March, he added.
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 Tavanir.
The minister said this will enable them to use their own power generating plants and not be dependent on the national power grid.
Industries account for 40% of Iran’s annual power consumption of 280 billion kilowatt hours.
Mining and manufacturing industries were adversely 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.
Peak Demand Hours
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 household consumption level.
All industrial units that consume more than 2 megawatts of electricity per month are charged 2.5 cents per kilowatt hour.
Mehrabian said operations are underway to build facilitates with a generation capacity of 5,600 megawatts, all funded by industries.
“Industries have made concerted efforts not to be at the mercy of Tavanir, especially in the summer when demand peaks, but we want them to increase investment in similar initiatives,” he said.
According to the minister, the first gas-powered unit of Mobarakeh Steel Company’s combined-cycle power plant will be connected to the national grid in July.
“This is the second power station constructed with the investment of industries that will add close to 900 megawatts to the national power grid when it is fully operational,” he said.
“As per a deal worth $430 million signed between Iran's biggest steelmaker in Isfahan Province and the engineering MAPNA Group in 2021, the latter was tasked with building the facility in three phases. The first gas unit of the plant with a capacity of 300 MW will go on stream in March.”
The facility will comprise two gas units and a steam unit with a generation capacity of 300 MW, and it is expected to be fully synchronized with the power grid in 2024.
F-Class Gas Turbines
Being built on a 12-hectare land in proximity to the Kharrazi substation in the steel mill, the new plant will be equipped with MAPNA’s F-Class gas turbines with a high efficiency rate of 59%.
“The plant will help the steel factory become totally independent of Tavanir that is struggling to meet industrial units’ growing electricity demand,” he said.
The first power plant financed by industries was connected to the power grid last year.
“The first gas unit of Shahid Bakeri Power Plant in Semnan Province with a capacity of 183 megawatts became operational last summer. The construction of the second and third gas units, each with a capacity of 183 MW, is underway,” he added.
Two more power plants funded by Almahdi Aluminum Complex in Hormozgan Province and Lamard Special Economic Zone in Fars Province will be linked to the national power grid by the yearend.
As per the government directive issued in 2022, all state-run offices are obliged to generate 20% of their power via renewable energies, especially solar photovoltaic panels, as of June.
According to the Energy Ministry’s report, offices that fail to comply with the new rule will have to meet 20% of their electricity demand from the Energy Bourse.
The expansion of rooftop photovoltaic power stations will help reduce the consumption of fossil fuels and curb environmental pollutants.
