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Mostafa Rajabi Mashhadi said the industrial sector has so far built power plants with a total capacity of 850 MW across the country to meet their electricity needs during the summer’s peak consumption period, IRNA reported.

According to the new Tavanir head, the government has set a goal to also increase the capacity of the country’s thermal power plants by 10,000 MW by the end of the current government incumbency (August 2025) of which so far 8,500 MW has been realized.

The official noted that the country’s electricity consumption increases by four to five megawatts each year that is one percent annually, and to meet this increasing demand every year the capacity of the country’s power plants should increase by 5,000 MW.

In July 2021, the Iranian Industry, Mining, and Trade Ministry signed a memorandum of understanding (MOU) with the Energy Ministry for constructing power plants for big industries.

Later in November of that year, Energy Minister Ali-Akbar Mehrabian announced that the construction of 10,000 MW capacity power plants was started by various industrial sectors, saying: “Four major industries have started their work in the field of power plant construction. Based on the contract concluded with these industries, the said industries will not be provided with electricity from the national grid if they cannot deliver the power plants based on the specified schedule.”

The first power plant unit constructed by the Iranian industrial sector went operational in Semnan Province in August 2022.

Over the past decade, constant temperature rises and the significant decrease in rainfalls across Iran have put the country in a hard situation regarding electricity supply during peak consumption periods.

In this regard, the Energy Ministry has been following new programs to meet the country’s power demand during peak periods and to prevent outages.

Constructing new units in the country’s power plants and also building new power plants for major industries are among the mentioned programs that are being pursued seriously by the ministry in collaboration with other related government entities.

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“The share of small-scale power plants in the country’s electricity generation currently stands at two percent,” Mostafa Rajabi Mashhadi wrote in an Instagram post.

We need the output of these power plants during the coming winter and the next year’s summer peak period as well, so it is recommended that overhaul operations be conducted for these units in case of necessity so that they can operate at full capacity during peak consumption periods, he stated.

According to the official, such power plant units have proper economic justification in most parts of the country, especially in underprivileged areas.

At present, Tehran, Isfahan, and Mazandaran have the highest number of installed small-scale power plants, Rajabi Mashhadi said.

The official noted that the government is pursuing a plan to make it possible for such power plants to sign contracts with industrial units to sell their generated electricity directly to the customers and get paid accordingly.

As reported, because small-scale power plants are constructed at the place of consumption (e.g. for factories, etc.) the loss of electricity in the transmission lines is eliminated, and therefore they are of significant importance in this regard.

Reducing the costs of network development, improving the voltage profile, and strengthening the resilience of the network are other important advantages that the use of such power plants is offering to the country’s electricity industry.

Iran’s electricity consumption has been increasing sharply in the past few years as the weather is getting hotter in the country and people are using air conditioners more often; So, constructing such power plant units could reduce the pressure imposed on the power grid during the peak consumption period.

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Higher level of installed [power plant] capacity compared to the actual generation, the existence of external problems such as reduced rainfall and non-standard conditions of power plants are three major problems in the electricity industry, Mehrabian said on Monday on the sidelines of a visit to Iran Grid Management Company.

“To solve these problems, we require a proper plan to increase the electricity generation with the same number of power plants in the coming years,” the minister stated.

“Unfortunately, in recent years, we have not been able to develop the power plant industry and add to the number of the country’s power plants in proportion to the demand growth; in other words, supply is far behind demand, and today’s demand is 13,000 megawatts more than production,” he added.

The minister noted that the Energy Ministry needs to define and implement new projects in collaboration with private sector investors, major electricity consumers like large-scale companies, and the government itself, to be able to meet the country’s electricity needs and prevent outages in the future.

According to Mehrabian, investing in renewable power plants will be one of the serious plans of the Energy Ministry in the coming years.

He underlined the management of supply and demand as another major issue that should be considered and said: “In consumption and demand management, we should use incentives instead of increasing prices; in such a way that consumers can manage their consumption and we would be able to return the resulting savings to the consumers.”

The energy minister announced the development of a practical and accurate plan for consumption management and noted: “We are currently preparing to develop this practical plan, which will be submitted to the government soon and, if necessary, we will send it to the parliament in the form of a bill.”

The official further pointed to the developments of the electricity industry and said: “The first outstanding characteristic of this industry is its significant development and expansion during the years after the Islamic revolution and the second characteristic is that we are completely independent in this industry.”

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The company has announced that the overhauled power plants will be put into operation gradually and before the peak consumption period in summer (starts on June 22 based on the Iranian calendar), IRNA reported.

Hot weather, reduced production of hydropower plants due to water shortage, increased activities of illegal cryptocurrency miners, as well as the coronavirus pandemic, have caused the Energy Ministry to face some challenges in meeting the electricity demands in the summer peak period.

In this regard, the ministry has been implementing several programs for preventing electricity shortages and blackouts in the hot season.

Accelerating the completion of annual overhaul operations of power plants has been one of the mentioned programs that have been considered for boosting power supply.

Signing agreements with industrial and agricultural sectors for reducing the electricity consumption by these sectors has been also another program that the ministry is implementing.

Also, the reduction of electricity exports is considered as another solution to meet the domestic electricity demand during the summertime.

“In some cases, and based on existing contracts, the electricity exports, came close to zero,” Iranian Energy Minister Reza Ardakanian has said.

According to the official, the government is also negotiating with some neighboring countries including Turkmenistan, Azerbaijan, and Armenia for increasing electricity imports in the summer.

Iran’s Deputy Energy Minister for Electricity Affairs Homayoun Haeri announced on May 19, that power consumption in the country rose 7,000-8,000 megawatts (MW) since the beginning of the current Iranian calendar year (March 21) up to the mentioned date, as compared to the same period of time in the past year.

Although every year nearly 3,000 MW is added to the country’s power generation capacity, the reduction in the rainfalls and the decline in the water storage behind the dams has reduced the electricity generation offsetting the added capacity, the official said.

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Speaking at the inauguration ceremony of some energy projects in the 10th week of the ministry’s A-B-Iran scheme, Ardakanian said: “During the current government incumbency over 20,000 megawatts have been added to the country’s power generation capacity.”

The official noted that since the Iranian calendar year 1396 (started in March 2017), the construction of 31 power plants with a total capacity of 15,000 MW has been started across the country, of which so far 3,150 MW has been put into operation.

Also, 20,000 solar PV systems will be provided to the nomadic households across the country in the current Iranian calendar year (started on March 20), and since the electricity supply to most of the country’s rural areas has been completed, the electricity network of 10,000 villages will be improved by the end of the year, Ardakanian said.

According to the official, under the framework of the A-B-Iran program in the current Iranian calendar year, so far 49 projects with a total investment of 134.6 trillion rials (about $3.2 billion) have been inaugurated across the country.

The nominal capacity of electricity generation at Iranian power plants has exceeded 86,000 megawatts with the inauguration of several new power plants over the past two years.

Currently, combined cycle power plants account for the biggest share in the country’s total power generation capacity followed by gas power plants.

President Hassan Rouhani, on Thursday, had ordered the commencement of a project for the construction of a 1,400-MW power plant in Hormozgan province.

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The official said that this amount of gas meets the whole need of power plants for fuel, Shana news agency reported on Tuesday.
In order to expand cooperation with the Energy Ministry and also with Iran’s Power Generation, Transmission and Distribution Management Company (known as Tavanir) for generation of more electricity, NIGC has made necessary coordination and planning for supplying more gas to the power plants, the director further noted.
He put the amount of gas supplied to the country’s power plants at over 67.5 billion cubic meters in the past Iranian calendar year (ended on March 20, 2018) and said that this amount has been more than 90 percent of the power plants’ need for duel.

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