Russians Discuss Power Sector Coop. in Tehran

Russians Discuss Power Sector Coop. in Tehran
Russians Discuss Power Sector Coop. in Tehran

Iran and Russia have commenced a new round of negotiations regarding a power deal worth up to $10 billion, in line with the memorandum of understanding signed between the two countries in September 2014.

Negotiations are focused on technical issues to finalize last year's MoU, Deputy Energy Minister Houshang Falahatian said, adding that several Russian expert delegations visited Tehran over the past few weeks for this purpose.

Construction of new power plants and optimizing the existing ones are among the important issues on the agenda. Several thermal and coal-powered power plants are to be constructed in Iran pursuant to the MoU, Mehr News Agency reported.

With the aim of importing 500 megawatts of electricity from Russia, Iran has held talks with neighboring Azerbaijan, Armenia and Georgia to synchronize power grids so as to import electricity from their territories. However, nothing has been finalized so far.

If necessary, Tehran is ready to invest in Georgia’s energy sector and build power plants and electricity transmission lines in the former Soviet Union republic, Falahatian said earlier.

Currently, Iran has energy exchange with Armenia, Pakistan, Turkmenistan, Turkey, Azerbaijan, Iraq and Afghanistan.

Oil Minister Bijan Namdar Zanganeh and Russian Energy Minister Alexander Novak signed four economic and commercial agreements in September 2014, including the construction of eight new power plants in Iran by Russian firms. Russia has expressed willingness to help upgrade dilapidated plants in Iran, including the Ramin Plant in Ahvaz in Khuzestan Province and Shahid Montazeri Plant in Isfahan.

Moscow has also held talks for the trade of 500,000 barrels a day of Iranian oil for Russian goods. According to the deal, estimated by some observers at $20 billion, Russia will cooperate with Iran's oil/gas industry, help build power plants, and supply machinery, consumer goods and agricultural products.