Iran plans expansion of power capacity by 2025
Date
1/28/2025 7:19:15 AM
(MENAFN) Iran plans to bring approximately 3,500 megawatts (MW) of new power plants (excluding renewable energy) into operation by the summer of 2025, according to Azim Etemadi, deputy for project development at the Thermal Power Plants Holding Company (TPPHC). Speaking to IRIB, Etemadi explained that progress in constructing combined-cycle power plants has been slow due to the high costs associated with building their steam sections. While gas power plants operate at 34 percent efficiency, the steam sections, which improve overall efficiency, have yet to be constructed.
Etemadi highlighted the differences in construction timelines, noting that gas power plants take 12 to 18 months to complete, while steam power plants require up to 36 months. Despite the challenges, steam power plants are crucial as they do not consume additional fuel and could significantly boost electricity production to address the country's energy imbalance. He also shared plans to add 2,520 MW of capacity in the public sector through Build-Operate-Transfer (BOT) contracts approved by the Economic Council.
In the private sector, 1,920 MW of steam power plants were previously approved by the Economic Council, but high costs and long construction timelines prompted investors to request revisions. These amendments have been submitted for approval. Etemadi acknowledged that outstanding debts have stalled some projects but noted efforts to attract private investment, including designing a "green board" for funding steam sections in combined-cycle plants.
To further address financing challenges, capacity certificates will be offered on a forward-selling basis within two weeks to help investors in steam power plant projects. Etemadi also detailed the construction costs, estimating €350 per kilowatt for gas power plants and €500 to €550 per kilowatt for steam sections. He emphasized that private sector investors would bear the responsibility for funding steam section construction.
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