Iran-China Consortium to Renovate 312 Substations

Iran-China Consortium to Renovate 312 Substations
Iran-China Consortium to Renovate 312 Substations

A consortium of Iranian and Chinese companies will implement the first phase of an extensive national plan to refurbish Iran’s aging electrical infrastructure, including the reconditioning of over 312 substations, Arash Kordi, managing director of Iran Power Generation, Distribution and Transmission Company (Tavanir), said.

According to IRNA, the first phase of the plan calls for the rehabilitation of 67 substations nationwide.

The project is to be implemented with the Iranian Parsian Group and China’s CHINT Electric Company to lead a group of other companies from the two countries.

CHINT Electric Company develops and manufactures modular devices, low-voltage power distribution and industrial controlling equipment, and systematic solutions.

“Two Chinese companies will finance the first phase of the project,” Kordi said without giving names, stressing that the maximum potential of domestic equipment manufacturers will be used in providing the equipment for renovating electrical substations and transmission lines.

The official added that at least 50% of the equipment will be procured by Iranian producers.

Iran’s far-reaching but largely dilapidated power grid has not had a major overhaul in a long time.

The rehabilitation of power transmission lines and the construction of new electrical substations will help the Energy Ministry handle peak-hour demands by reducing wastage.

“In such projects, we put a great deal of effort to attract foreign finance while employing domestic equipment that helps the national industry to grow,” Kordi said.

Masoud Khani, an official at Tavanir, had earlier announced that the government has issued a permit to use foreign financial resources for the project’s first phase.

“This translates into commissioning local producers to provide equipment worth about 20 trillion rials ($512.8 million),” he said.

According to the official, the finance equals total investments in the sector in the past five years.

He underscored that imported equipment will be used only when domestic manufacturers cannot produce certain devices matching the international standards.

Experts say Iran needs to expand power generating capacity by 5,000 megawatts annually, or 20,000 MW in four years, to meet rising demand at home and expand its footprint in the regional energy market. Iran’s installed power capacity is currently around 77,000 MW.


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