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Plan to Launch Subsea Electricity Export

Plan to Launch Subsea Electricity ExportPlan to Launch Subsea Electricity Export

Iran is holding negotiations with neighboring countries, with which it shares sea borders, to launch electricity exports by establishing a subsea cable, Arash Kordi, managing director of Iran Power Generation, Distribution and Transmission Company, said on Sunday.

Houshang Falahatian, deputy energy minister, has earlier commented on the issue, saying the talks have been held with Persian Gulf littoral states, including the UAE and Oman, to set up an underwater cable for power export, IRNA reported.

He added that the project’s first stage encompasses power delivery to the UAE’s Abu Dhabi.

“Establishment of subsea cables is cost-intensive, which explains why the project should be financed by Iran and power-receiving countries,” Falahatian said.

The official stressed that the costs of the project is yet to be determined, thus the feasibility studies should be finalized.

Kordi also told ISNA that plans have been devised to raise electricity exports to Pakistan and Afghanistan, adding that the Persian Gulf country has developed potentials to increase power delivery to Turkmenistan, Azerbaijan and Armenia.  

“Based on predictions, Iran’s total electricity export will amount to 10 billion kilowatt-hour in the current Iranian year [started March 20],” Kordi said.

The figure equals last year’s power exports.

According to Falahatian, Iran is expected to raise more than $434 million in revenues from the electricity export in the current Iranian year.

He added that the country plans to increase its power production capacity from the current 74,000 megawatts to 100,000 MW, apart from expanding the number of voltage stations and power transmission lines by the end of the sixth five-year development plan (2016-21).

Falahatian noted that in view of the oil price plunge, power export is advantageous for Iran as it can increase the sustainability of the country’s electricity grid and set up closer ties with the neighboring countries. 

Financialtribune.com