The Thermal Power Plants Holding Company says it will shut decrepit power plants producing 1,200 megawatts amid a push toward efficient electricity production and investments in renewables, head of the company said.
“Power plants with overall production capacity of 3,000 MW are decrepit and need to be gradually phased out,” Mohsen Tarztalab was quoted as saying by ISNA on Wednesday.
Two plants, Rey in the south and Tarasht in the west of Tehran will be among the first to be shut.
Replacing one old power plant with a modern facility needs about $2 billion.
On government measures for modernizing the national power infrastructure, he said work is underway to this effect in the deprived Sistan-Baluchestan Province.
“Work to modernize a 160 MW power plant in Zahedan has begun,” he said without elaboration.
Tarztalab stressed that the rehabilitation projects would also help curb wastage in the electricity network.
Iran’s fossil fuel power stations have an average efficiency of 37%, but the government has turned to using modern turbines made by domestic engineering firms, namely Mapna, as part of plans to upgrade the electrical infrastructure.
More than 80% of the total electricity output comes from thermal plants that run on fossil fuels and renewables account for 650 megawatts, or less than 1% of the energy mix.
The news agency said the government had commissioned building renewable power plants with the help of foreign investment estimated to cost $7.3 billion. Most of the projects were cancelled or put on hold due to the new US sanctions that came into effect this month.
Iran is the largest exporter and importer of electricity in the Middle East and exports power to Pakistan, Iraq and Afghanistan. Azerbaijan and Armenia supply electricity to Iran under a swap agreement.
