Iran earns close to $1 billion per year from electricity exports to neighboring countries, deputy energy minister Houshang Falahatian said, Fars news agency reported.
"Annual electricity exports are around 12 billion kilowatt-hours (kWh), and 4 billion kWh are imported in summer," he said.
He termed electricity export revenues as "acceptable" and in line with the "economy of resistance," a policy proposed by the Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei to counter the sanctions, promote domestic growth and reduce consumption.
"We have plans to expand electricity exports to our neighbors and beyond," the official said.
Iran's electricity market is now ten years old, with all the state and privately-owned power plants offering their output in the market, according to Falahatian. Major consumers, including provincial distribution companies, buy electricity from the domestic market.
The official stressed that providing electricity to the Mehr Housing Project requires a "huge fund", but the energy ministry and the ministry of roads and urban development are having "close cooperation" to reach the goal, he said without providing details.
The Mehr project, designed in 2007, aimed to cover a part of housing shortages by building around 2 million units within 5 years.
He added that the energy ministry has the capacity to provide electricity to 1.5 million new subscribers every year.
Gas Tariffs
The price of gas to generate electricity for exports will be finalized in the near future and export tariffs will vary for each neighboring country, managing director of the National Iran Gas Export Co. (NIEGC) said.
Alireza Kameli said, "Electricity will be exported to neighboring countries based on different pricing formulas."
Agreements have been reached with private companies to carry out electricity exports, and several firms are willing to construct power plants in the border regions.
He stressed that foreign firms have no restriction to invest in Iranian power plants if they comply with domestic laws and regulations.
First Vice President Eshagh Jahangiri had earlier stated that Iran can use inexpensive gas to generate and export electricity.
