Energy Deals With Russia

Energy Deals With Russia
Energy Deals With Russia

Iran and Russia have reached an agreement to build a coal-fired power plant in Tabas in South Khorasan Province, deputy energy minister Esmael Mahsouli said, Mehr news agency reported Tuesday.

"Building power plants and power lines and expanding electricity exchange are among the negotiations between the two countries," Mahsouli noted.

Financial and technical aspects are being worked out for building a coal-fired thermal power plant in Tabas with 5,000 megawatts (MW) capacity, in addition to other issues such as establishment of high-voltage transmission lines.

The two sides agreed on exchange of 500MW of electricity in the first phase of their energy exchange. Iran will import electricity from Russia next summer and will export its electricity surplus to in the winter.

Adjustments are being made to Azerbaijan's national electricity grid in order to synchronize Iran and Russia's power grids.

The Russians recently signed a deal to build two 'generation III' nuclear reactors in Bushehr Province, two years apart, each with a capacity of 1,000 megawatts.

Oil Minister Bijan Namdar Zanganeh and Russian Energy Minister Alexander Novak signed four economic and commercial agreements in September, including the construction of eight new power plants in Iran by Russian firms.

The national Iranian Gas Company (NIGC) also signed a MoU in September with a Russian company for the construction of Iranshahr-Chabahar pipeline, which requires $700 million investment.

In addition to the construction of the new power plants, Russia has expressed willingness to restore dilapidated plants in Iran, including Ramin Plant in Ahvaz in Khuzestan Province and Shahid Montazeri Plant in Isfahan Province.

Trade between Russia and Iran may soon increase from the current $1.7 billion to $3 billion, Alexei Pushkov, chairman of the international committee of the Russian State Duma lower parliament house, said on Monday, according to Irar-Tass.

The two sides are discussing an ‘oil for goods’ deal that has not taken effect as quickly as each party would have liked, it is nevertheless being pursued,” Pushkov said, noting there were some major obstacles.