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Iran-Iraq Power Contract Extended

Iran-Iraq Power Contract ExtendedIran-Iraq Power Contract Extended

Iran extended a contract to export electricity to Iraq by the end of 2015, Deputy Energy Minister Houshang Falahatian said, Fars news agency reported.

According to the deal, volume of export to Iraq will remain the same. The two neighbors had reached an agreement in October to extend power trade by 2014.

Iran will export 1,000-1,500 MW electricity to Iraq in the next year, but the volume is not expected to increase in the cold seasons. "Iran has exported only 200 MW electricity to Iraq in the past few days," Falahatian said.

He stressed that the rate of electricity export to Iraq will not change for next year, because the price is determined by a certain formula which is a function of oil prices.

Annual electricity export is estimated at 12 million kilowatt (KW), generating $900 million to $1 billion revenue. Iran has received around 90 percent of its dues.

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

Iran is the largest exporter and importer of electricity in the Middle East and exports electric power to Armenia, Pakistan, Turkey, Iraq, and Afghanistan. Azerbaijan and Armenia supply electricity to Iran under a swap agreement.

 

Financialtribune.com