5-Year Plan to Double Power Exports

5-Year Plan to Double  Power Exports5-Year Plan to Double  Power Exports

Iran's electricity exports will be doubled from the current 10 billion kilowatt-hours to 20-25 billion kWh per year by 2020, managing director of Iran Power Generation, Distribution and Transmission Company (Tavanir) said.

Arash Kordi also told Shana that electricity exports generate $600 million in annual revenues, adding that plans are made to synchronize large power grids in the region such as Russia's to have electricity exchange during peak demand.

"At present, the private sector holds 33,000 MW of Iran's installed power capacity … If the capacity is raised by another 30,000 MW by 2021, private companies will hold 70% of the country's total power generation capacity," he said.

He added that Iran is determined to gradually hand over the whole industry to the private sector.

With an annual 274 billion kWh power output, Iran is the largest producer in the Middle East and 14th in the world in terms of installed power capacity.  

Nominal power generation capacity stands at around 74,000 MW nationwide, with 61,000 MW coming from thermal power plants, 12,000 MW from hydroelectric plants and only 1,000 MW from nuclear power.

Noting that competition between private companies can result in almost real power prices, Kordi said it can help reduce end-prices, boost efficiency and increase transparency in prices.

Plans call for raising power production capacity by 50,000 megawatts in 10 years, boosting the country's total installed power capacity to more than 120,000 MW.  

In addition, plans call for raising power output from renewables to 1,000 MW by 2021. To expand renewables infrastructure, Iran has turned to European powerhouse Germany that produces 90,000 MW from renewables, more than Iran's total power generation capacity.