Exporting raw materials cannot be considered a wise and sustainable economic strategy in today’s highly competitive world and it is high time decision-makers look more closely at value-added products, in particular electricity export, says a deputy energy minister.
Speaking Monday at the 33rd International Power System Conference (October 22-24) in Tehran, Homayoun Haeri said, “In the power industry raw materials — mostly natural gas — is converted into electricity and exporting this product is more economically viable,” IRNA reported.
Almost 95% of power stations are running on natural gas as feedstock and efforts are underway to stop using eco-unfriendly fuels like mazut to generate power by the end of the current fiscal in March.
Iran has 34 trillion cubic meters of natural gas reserves, the largest in the world ahead of Russia with 32.6 tcm. Current gas production is close to 850 million cubic meters gas per day of which 50 mcm is exported to Turkey and Iraq.
Conversion of natural gas into electricity, petrochemicals or even using it as fuel in the production of steel, aluminum etc. adds value to the commodity compared to the export price of gas.
Annual power generation in Iran is 77,000 megawatt and average annual export is 10,000MW hours to Iraq, Pakistan and Afghanistan.
It is reported that total electricity exports is around $850 million per annum.
Power Wastage
About power wastage in the national grid, Haeri said, “In 2014 power loss reached 15% but has now been cut to 10.4%.”
The Energy Ministry is doing all it can to cut waste and make the sector more efficient. It plans to reach the wastage rate of 8% by 2022.
“Electricity loss fell to under 10% for two weeks in September but increased again,” the deputy minister said without saying why.
Disposing old and defective equipment, lines, utility posts, cables and electric meters as well as curbing illegal use (theft) of electricity are among measures taken by the relevant bodies to reduce electricity loss.
