Energy
0

Gas Price Encumbers Power Export

Gas Price Encumbers  Power Export Gas Price Encumbers  Power Export

The high price of gas feedstock used to generate electricity for export does not justify investment in building power plants, the head of the board of directors at Iran’s Electrical Industry Syndicate said on Saturday.
“The price determined by the Oil Ministry for the thermal power plants' gas feedstock is close to that of exported natural gas, which is a high price for power production,” Mehr News Agency also quoted Payam Baqeri as saying.
"One of the reasons behind Iran’s lack of strong presence in regional electricity markets is the disagreement between oil and energy ministries over the price of feedstock delivered to thermal power plants."
According to Baqeri, while Iran’s neighboring countries can be significant markets for its electricity, they are meeting demand from other sources speedily. The official noted that government monopoly is another factor for the low rate of Iran’s power export and said the private sector plays no role.
 

Premium

Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Add new comment

Financialtribune.com