$12.3b of Foreign Finance for Iran Electricity Industry

$12.3b of Foreign Finance for Electricity Industry
$12.3b of Foreign Finance for Electricity Industry

Foreign investors have finalized $12.3 billion worth of contracts in Iran’s power sector, the energy minister said in an interview with the state television on Sunday.

“Some $2.5 billion of power investments have been allocated to the construction of solar power plants, with a combined power generation capacity of 2,000 megawatts,” Mehr News Agency also quoted Reza Ardakanian as saying, adding that 70% of the solar investments will be provided by foreign financiers.

Ardakanian noted that in the coming days, which mark the 39th anniversary of the 1979 Islamic Revolution, over 5,300 electricity plans, which include setting up transmission lines as well as distribution substations, are slated to go on stream with more than 270 trillion rials ($5.75 billion) in investment.

He stressed that 43 projects include the construction of renewable power plants that can produce 183 MW of electricity.

“These plans also include seven power plant projects, with a power production capacity of 723 MW, which are planned to come on stream at a cost of over €2 million [about $2.5 million],” he said.

According to the minister, the steam unit of Chadormalu power plant with €280 million ($349 million) in investment and Taban power plant with €288 million ($359 million) are due to be inaugurated in the central Yazd Province, which will generate 320 MW of electricity collectively.

Ardakanian said currently, 57,000 villages are connected to the national power network, while only 4,300 were linked to the power grid four decades ago before the Islamic Revolution.

Stressing that the country plans to add 1,000 MW of renewable power production capacity per annum, he said that in the past 10 months, renewable power plants, with 600 MW of capacity, have gone on stream.

Almost 62,000 MW, or 80% of 77,000-MW output, are generated from thermal plants that burn fossil fuels. In addition, 12,000 MW are derived from hydroelectric plants and 1,000 MW from the sole nuclear power plant in Bushehr.

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