A total of 75,000 diesel wells will be electrified in the next three years, the program manager for developing electricity network for agricultural wells said.
“The project will help save 750 million liters of eco-unfriendly diesel a year,” IRNA quoted Hossein Mahmoudi as saying.
“Under the current difficult economic conditions, the project, estimated to cost $1.2 billion, can help the Oil Ministry raise export of petroleum products because such exports are easier compared to other energy carriers,” he added.
The US re-imposed strict sanctions on Tehran after it unilaterally withdrew from the landmark 2015 nuclear deal last May. The first round of sanctions came into effect last August before tougher restrictions on the oil and banking sectors were announced last November.
The amount of diesel saved by the electrification of water wells can be exported at 30 cents per liter.
The project is the result of an agreement signed last month between the government-affiliated Power Generation, Distribution and Transmission Company (Tavanir) and Iran Fuel Conservation Company, a subsidiary of National Iranian Oil Company.
Not only will the initiative help burn less environmentally-unfriendly fuel and reduce air pollution, it also will cut high maintenance costs.
Diesel consumption is close to 85 million liters per day, up 11% compared to 2018.
Official data show that there are over 200,000 diesel farming wells in the country. The process of electrifying the wells can take up to eight years.
Smart Meters
Electrification of the water wells will pave the way for installing new smart meters on the wells, Mahmoudi said, adding that placing the new device will help the Energy Ministry closely monitor the level of extraction from groundwater sources.
A smart meter is a modern electricity meter that digitally sends meter readings to utilities, keeps consumers abreast of the consumption levels and ensures accurate billing.
According to the Energy Ministry, there are almost 500,000 legal and 320,000 illegal wells in the country. Since 2014, 100,000 wells have been equipped with the new device.
Transforming traditional wells into smart wells has been on the agenda of the ministry and so far 20% of the legal wells have new meters. More smart meters means better and efficient monitoring of power and water consumption.
Injudicious use of groundwater from legal and illegal wells has become a major concern that has only gotten worse over the past half century as precipitation declines and consumption rises.
Utilities in many developed and developing countries are promoting advanced electricity meters for economic and environmental reasons, namely to reduce costs and consumption.
The new meters helped save 1,000 megawatt and 3,000 MW in 2017 and 2018 respectively.
