The first geothermal power plant will be constructed in Meshkinshahr, Ardabil Province in northwest Iran, the energy minister said.
Speaking in a live TV program called “The Economy”, Hamid Chitchian added that feasibility studies to build a 5-megawatt geothermal power plant have been conducted and an agreement has been signed.
“Construction operations will commence in the near future,” ISNA quoted Chitchian as saying.
According to the official, exploration research in the region indicates that homeowners in the area can harness geothermal energy by drilling a 50-meter well in their yard and extracting heat with a thermal pump to save at least 10% of their electricity costs.
The minister said, “There is no equilibrium between expenses and revenues in water and electricity sectors. Because revenues were not realized as predicted, the government had to raise prices. Each kilowatt of electricity is generated at a cost of $0.026, whereas people are charged only $0.020.”
Underscoring the 8,000-megawatt contract with the private sector, he said, “More than 60% of Iran’s thermal electricity are produced by private enterprises.”
On the critical issue of constructing renewable power plants, Chitchian noted that during the sixth economic development plan (2016-21), 5,000 MW will be generated by renewable power plants.
