The first phase of Bandar Anzali small-scale power plant with 25-megawatt output will become operational in Gilan Province soon.
Hassan Vali, the project operator, said Sunday the venture with distributed generation systems was financed by the National Development Fund of Iran, ILNA reported.
According to the official, the Caspian Power Plant Generator Company started construction work in 2017 on a 5,000 square meter area in Anzali Free Trade-Industrial Zone.
"The bureaucracy tied to releasing imported equipment from the customs plus steep fluctuations in foreign exchange rates have been the major impediments to completing the power project on time," he said.
Vali said with the efficiency rate of 55%, the plant will be able to support the Rasht electricity power grid during peak demand hours.
Distributed generation refers to the electricity produced in small quantities near the point of use, as alternative or supplement to traditional centralized grid-connected power. It reduces the cost and complexity associated with transmission and distribution, while offsetting peak electricity demand and stabilizing the local grid.
The official noted that incentives have been announced to attract investors and encourage private investments in small power projects.
"The Energy Ministry guarantees the purchase of electricity generated by small plants for at least five years," he said.
Producing companies can sell their electricity under the supervision of the ministry, he said without elaboration. Companies building DG plants in free trade zones are also eligible for 10-year tax holidays, he was quoted as saying.
