$350m Kerman Power Plant Comes on Stream

Kahnuj Combined Cycle Power Plant with an output capacity of 484 megawatts is expected to go on stream today in a ceremony attended by First Vice President Es'haq Jahangiri in Kerman Province, Iran’s Thermal Power Plants Holding Company chief executive said.

“Kahnuj Shoubad Power Plant that cost $350 million comprises two gas-powered units each with 162 MW capacity in addition to a 160 MW steam-powered unit,” Mohsen Tarztalab was quoted as saying by IRNA.

A combined-cycle power plant, or CCPP, uses both gas and steam turbines to produce up to 50% more electricity from the same fuel input than a traditional plant.

Elaborating on the details of the project, Tarztalab noted that the power plant substation's capacity is 400 kilovolts. Moreover, two storage units, each with a capacity to hold 15,000 cubic meters of feedstock have been built at the site of the complex. The power plant will use natural gas and diesel as feedstock.

“Concurrent with inauguration of the power plant, construction of 28 power plant projects will start across the country, including in the cities of Bandar Abbas, Urmia, Kashan, Qeshm and Assalouyeh,” Tarztalab said.

According to the official, plans have been made to build several steam power plants with a total electricity production capacity of 17,000 MW. 

Iran needs billions of dollars in foreign funding to develop its power sector.

According to Tarztalab, an 890 MW power plant in Bandar Abbas will be financed by the private sector while Makou's 110 MW power plant in West Azerbaijan Province is being built with the help of Chinese firms.

Power Deal With Turks

Dismissing speculations on the annulment of the multibillion dollar contract signed two months ago with Turkish Energy Company Unit International for building power plants in Iran, the official said negotiations are also underway with Belgian, South Korean, Japanese and Chinese investors to sign a $6 billion deal to construct new power plants that will add 8,700 MW to the national grid.

Iran’s power industry sealed its first foreign investment contract after the easing of international sanctions with the Turkish investor.

As per the deal, Unit International will build combined-cycle power plants in six regions, which would generate a total of 5,000 megawatts.

“Upgrading simple-cycle plants to combined-cycle types is a major investment opportunity in Iran,” Tarztalab said.

According to published reports, 34 state-owned gas-powered units as well as 59 privately-run gas and steam plants producing more than 7,500 megawatts are set for conversion into combined-cycle units.

Almost 62,000 MW, or 80% of Iran’s 75,000-MW output, is generated from thermal plants that burn fossil fuels. In addition, 12,000 MW comes from hydroelectric plants and 1,000 MW from the sole nuclear power plant in Bushehr, south of Iran.