Agreement on Gas-Fuelled Electricity Exports

Agreement on Gas-Fuelled Electricity ExportsAgreement on Gas-Fuelled Electricity Exports

The National Iranian Gas Company (NIGC) has signed an agreement with a privately-owned firm, according to which the private sector will, for the first time, export electricity based on national gas export tariffs, Fars news agency said in a report.

According to the agreement, investing in electricity production with high thermal efficiency, securing permission and financing power plant construction, providing necessary infrastructure for electricity supply, and marketing will be carried out by the private sector.

The contract is aimed at diversifying gas exports and increasing the volume of electricity exports, and is in line with the 'resistance economy,' a policy proposed by the Leader of the Islamic Revolution Ayatollah Seyed Ali Khamenei to counter the sanctions, promote domestic growth and reduce consumption.

Revenues from gas-fuelled electricity will be shared between the investor, the National Iranian Oil Company (NIOC) and the NIGC.

Additionally, there are plans to replace polluting fuels with gas as feedstock in industrial units by the end of the next Iranian year (March 2016), managing director of Tehran's Department of Environment Mohammad Heidarzadeh said Friday.

Gas is now being used as feedstock in the Be'sat thermal power plant in south Tehran as well as the Montazer Ghaem combined cycle plant in Alborz Province as a measure to reduce pollution, he noted.

Replacement of 17,000 diesel-powered city buses with gas-fuelled buses and optimization of 600,000 power facilities across the country are among other actions considered to curb air pollution.