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Council to Study Energy Conservation Plans

Council to Study Energy Conservation PlansCouncil to Study Energy Conservation Plans

Details of a plan were outlined Monday that will help conservation and save energy costs to the tune of several billion dollars.

Six of the plans to this effect are finalized and should save $12 billion. The plans have been sent to the 'Economic Council' for approval, head of the Iran Fuel Conservation Company (IFCO) said, FNA reported.

Nosratollah Seyfi noted that "six projects to help improve energy consumption are based on Note 2 of the annual (March 2014-2015) budget. Replacing 17,000 dilapidated busses and 40,000 taxis with new fuel-efficient vehicles and developing urban and rural gas networks with the help of the private sector are among the projects."

This would add another 2.3 million subscribers to the gas network, 1.8 million of whom will receive gas through city gas pipelines and the rest through CNG. However, mini units of liquefied natural gas (LNG) are functional and will provide services if economically feasible, he said.

On the returns from new investments on LNG units the official said reasonable "profits are guaranteed from the Note 2 of the budget and savings emanating from liquid fuel conservation."

Improving productivity and efficiency of power plants should help save $2 billion in energy costs while replacing 400,000 decrepit motorbikes with electric two-wheelers has been proposed to the Tehran Municipality.

Supplying gas to power plants in Sistan-Baluchestan Province that are currently using mazut as fuel is among the new plans of the Economic Council.

"Total value of the six projects amounts to $12 billion to be funded by private investors which the oil ministry will refund later from fuel conservation," the official said without elaboration.

None of the multi-billion-dollar plans would be launched during current Iranian year (ending March 2015) and will take three months for the projects to be assessed and endorsed by the council.

"Such investments are long-term. However all contracts will be signed before the year is out. The period of investment returns and methods thereof will be on a case by case basis."

Financialtribune.com