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IEIS Seeks Bigger Share of Iraq Market

IEIS Seeks Bigger Share of Iraq MarketIEIS Seeks Bigger Share of Iraq Market

Iran aims to increase its share in Iraq's electricity market by 50-60 percent, chairman of the Iran Electrical Industry Syndicate (IEIS) said, Moj news agency reported Monday.

"Iraq has one of the most important electricity markets in the region, but we are hardly operating at 10 percent capacity in this neighboring country's 20-$25 billion market," Aliresa Kolahi said on the sidelines of the 14th Iran International Electricity Exhibition in Tehran.

Members of the IEIS cannot reach full production potential due to financial problems, and export is "the only way to help end the recession" in the electricity industry, he noted.

Established in 2000, the IEIS consists of 450 manufacturers, contractors and consulting companies with an estimated turnover of $15 billion per year.

He stressed that financial constraints of the energy ministry directly affects electricity equipment manufacturers.

"Unfortunately, we do not have the backing of the government, and even specialized banks refuse to help electricity equipment manufacturers," he said, adding that electricity companies in Turkey have been successful due to the government support.

Turkey and Saudi Arabia are among Iran's major competitors in the overall power generation and equipment industry in the region, according to the official.

On the potential of the key industry, he said, "Electricity output and reduction of power outages are good indicators of the competence of the sector."

Iran’s electricity industry ranks 14th in the world and first in the Middle East in terms of electricity generation with an estimated installed capacity of 67,000 megawatts.

Electricity exports to neighboring countries increased more than 4 percent in the March-September period and production increased by 7 percent compared to the same period last year.

 

Financialtribune.com