Over $12b invested in power plant construction since 2013
Foreign and Iranian private sectors invested $12.35 billion in the construction of power plants in Iran during March 21, 2013-September 22, 2017.
Of this figure, $8.45 billion pertained to the establishment of large thermal power plants, $2.64 billion was invested in building renewable plants and $1.258 billion was made available for the construction of small-scale power stations, IRNA reported.
Small scale plants generate electricity in small amounts, allowing consumers to produce electricity and deliver surplus production to the national power grid or other consumers.
The trend of signing contracts to set up thermal and renewable power plants in the country gained considerable momentum in 2015 and 2017.
During March 21, 2013-September 22, 2017, the number of thermal power plant construction projects with a total power generation capacity of 15,444 megawatts were handed over to private investors. If the projects are completed according to the schedule, these power generation stations will go on stream during the Sixth Five-year Economic Development Plan (2017-21).
This will be sufficient to meet domestic d demand in the years to 2021.
Investment in renewable power plants grew remarkably since late April 2016 after new investment conditions and rates were laid out and set, respectively, and the duration of relevant contracts was extended to 20 years.
While no investment contract for establishing renewable power plants was concluded during 2013-2015, deals worth over $922 million and $2.64 billion were signed with foreign and domestic private sectors in 2016 and the six-month period to September 22, 2017, respectively, to build such power stations in Iran.
Based on the contracts, the investors are obliged to set up renewable power plants with an electricity generation capacity of over 1,840 megawatts.
Over the four-and-a-half-year period to September 22, 2017, contracts have been concluded to increase the power generation capacity of small scale plants to 2,000 megawatts.
In addition to the investment contracts signed during this period, more than 5,135 megawatts were added to the country’s power generation capacity during the four-and-a-half-year period to September 22, 2017, with the participation of domestic and foreign private investors.
These power plants involved investments of $4.11 billion of which $3.55 billion was used for the construction of thermal plants with a power generation capacity of 4,417 megawatts, $211 million were channeled into building renewable power stations capable of producing 141 megawatts of electricity and $348 million were made available for the establishment of small-scale electricity generation stations with a capacity of 580 megawatts.
Since the first administration of President Hassan Rouhani took office in 2013, 54 power plant units with an electricity generation capacity of 77,000 megawatts have been established with public and private sector investment.
In 2016, domestic power industry witnessed the highest growth in the power generation capacity of the country. Of course, a remarkable number of power plants were constructed in Iran in 2014 and 2017.