Power Plants Worth $8b Under Construction

Power Plants Worth $8b Under ConstructionPower Plants Worth $8b Under Construction

Thermal Power Plants Holding Company has been tasked by the Resistance Economy Headquarters—a top government economic advisory body—to build power plants worth $8 billion for producing 28,800 MW of electricity, managing director of TPPHC announced on Monday.

“The major initiative will be undertaken in the form of three separate projects,” Mohsen Tarztalab was also quoted as saying by IRNA.  

Giving a breakdown on the venture, the official noted that the first plan is to complete a 1,800 MW power plant, 1,200 MW of which have already gone on stream. The second plan calls for developing a 10,000 MW power plant with the help of private sector in the near future.

Pointing to the third initiative, Tarztalab said, "Plans have been made to construct steam power plants for producing 17,000 MW of electricity, which will be implemented in the form of 20 projects, six of which have already been started."

According to the official, a part of the 17,000 MW steam power plants venture is Parand Power Plant that has progressed by 50%.

"Plans are underway to make it operational by the end of the current Iranian fiscal year (March 2017) unless financial constraints impede its progress," he said.

"Parand gas power plant is the first complex whose conversion to combined-cycle unit, to boost its efficiency from 33% to 50%, commenced with the help of the private sector," he said, noting that the power plant's current capacity stands at 954 MW, which will increase to 1,434 MW as soon as the steam unit comes on stream. Asked about the progress of projects, Tarztalab added that each of these projects has made 25% progress in the last four months.

Underscoring the fact that developing such huge projects requires a massive investment, the official said, “In order to implement the venture, different executive bodies, including the Central Bank of Iran, the Economy Ministry and Management and Planning Organization should have close cooperation with TPPHC.”

Stressing that the efficiency of gas power plants in the world stands at 62%, Tarztalab said plans have been made to boost the efficiency of the country's power plants by 58% by converting them to combined-cycle plants.

The official believes that making the guaranteed purchase of electric output, tapping into the National Development Fund and attracting foreign direct investment will definitely help the plans get off the ground faster than planned.

According to Tarztalab, facilitating the transfer of technology, empowering domestic production, financing projects and implementing at least 51% of the operations in the country are the Energy Ministry’s main conditions for establishing ties with foreign sides.

Tarztalab stressed that by the end of the sixth five-year development plan (2016-21), Iran’s total power generation capacity should be increased by 26,000 MW, of which 19,000 MW account for thermal power.

Iran’s electricity industry ranks 14th in the world and first in the Middle East in terms of power generation with an installed capacity of 74,000 MW.