Close to 900 megawatts of electricity will be imported to meet demand in summer and prevent potential blackouts in the hot season, a deputy minister energy said on Tuesday.
Homayoun Haeri added that the country needs to increase its power purchase by 200 MW due to the unprecedented low precipitation in winter, which has cut the output of hydropower plants, IRIB reported.
"Iran regularly imports 700 MW of electricity in summer, but the country will face critical water shortages and blackouts since rainfall was dismal in the winter," he said.
According to the official, the backup power will be supplied by Azerbaijan.
As per a deal signed between Azerbaijan's electricity producer, Azerenergy JSC and Iran Power Generation, Distribution and Transmission Company in April, the Caucasian country will export 180 MW of electricity to Moghan and Astara regions in northwestern Iran.
According to energy outlets, Baku and Tehran have capacities to exchange 700 MW of electricity. Iran trades electricity with four neighbors on its northwestern and western borders, namely Azerbaijan Republic, Turkey, Armenia and Iraq.
Under swap deals, Iran exports electricity to Armenia and Azerbaijan in winter and imports it when domestic demand soars in summer.
Total electricity production capacity stands at 77,000 MW, of which over 64,000 MW are generated in thermal power plants operated by TPPHC. In addition, 12,000 MW are supplied by hydroelectric plants and 1,000 MW from the sole nuclear power plant in Bushehr. The country's power demand hit a historic high of 55,400 MW in July 2017, up from about 53,000 MW in the fiscal 2016-17. However, this summer's demand is forecast to exceed 57,000 MW this summer, as people turn on air-conditioners to alleviate simmering temperatures.
Supportive Plans
Based on the government policies to promote the role of renewables, state organizations, companies and NGOs enlisted by the Ministry of Energy are obliged to purchase at least 20% of their electricity needs from green energy suppliers in two years.
Hossein Sabouri, the chief executive officer of Tehran Province Electricity Distribution Company, said on Tuesday that in case the organizations do not follow the rules, 20% of their consumption will be charged over 7 times higher than the average rate.
"They will have to pay 8,000 rials (20 cents) per each kilowatt hour, while the average cost for one kWh stands at 1,100 rials (3 cents)," he added.
The country plans to generate over 5,000 MW of renewable energies in the long run: 4,500 MW of which are wind power and 500 MW solar.
Incentives like banking facilities have also been provided by the government to the private sector to boost investments on renewables.