Energy in Iran - Electricity

Electricity

See also: List of reservoirs and dams in Iran, List of power stations in Iran, and Ministry of Energy

Iran’s domestic consumption and production have steadily grown together since 1984 and it is still heavily reliant on traditional thermal energy sources of electricity, with a small fraction being produced by hydroelectric plants. Consumption has steadily risen and it is expected to rise at about 6 percent per year for the following decade. Accordingly, the Iranian energy sector must focus its efforts on meeting this continuing demand. Today Iran ranks 19th largest producer and 20th largest consumer of electricity in the world. A research by the Ministry of Energy indicated that between 15,000-20,000 megawatts of capacity should be added in Iran in the next 20 years. In recent years Iran has put greater emphasis on participation of domestic and foreign investors in electricity generation sector, with projects underway to add 40,000 MWh more capacity to the national grid.

It is estimated that some 18.5 percent of electricity generated in Iran are wasted before it reaches consumers due to technical problems. Iran is among the top ten manufacturers of gas turbines with a capacity of 160 megawatts. Iranian experts of JEMCO (a subsidiary of IDRO) have succeeded in developing the capacity to produce one-megawatt generators. Iran has acquired self-sufficiency of over 80 percent in constructing hydraulic turbines and over 90 percent in producing gas turbines. Within the next few years, Iran can join the list of countries that produce power plant technology (2009). Iran has achieved the technical expertise to set up hydroelectric, gas and combined cycle power plants. Iran is not only self-sufficient in power plant construction but has also concluded a number of contracts on implementing projects in neighboring states.

The exploration efforts for sources of power generation are wide and diverse in Iran. Plans are being made to make oil efficient power plants as well as an emphasis on natural gas production in order to meet their growing electricity demand. Nuclear power and hydroelectric power are not focused on for the time being, but they are part of an overall strategy to meet electricity demands. The electricity sector is also heavily subsidized and mostly state owned companies control power distribution, transmission and generation. In order to meet the demands of the electricity sector, however, Iran is beginning to look into private investment. A by-law has been passed allowing the energy ministry to conclude rial or combined rial/foreign-currency contracts for the purchase of electricity from private companies. Private companies in Iran generated 14,440 megawatts of electricity in 2009.

Although some criticize Iran's hydroelectric power plans as potentially dangerous to the environment, most agree that the country's current state of hydroelectric production is much better off than in the past. Iran has displayed a new approach to this sector. After the 1979 Islamic Revolution, the construction of hydroelectric power plants became both a popular private and public venture. Often, construction projects did not meet basic environmental standards, engineering standards, and technical requirements. As a result many of these dams were destroyed or left in dilapidated conditions.

By 2004 the addition of new hydroelectric stations and the streamlining of conventional coal- and oil-fired stations increased installed capacity to 33,000 megawatts (MW). Of that amount, about 75 percent was based on natural gas, 18 percent on oil, and 7 percent on hydroelectric power. However, in 2004 Iran opened its first wind-powered and geothermal plants, and the first solar thermal plant was to come online in 2009. Iran has recoverable coal reserves of nearly 1.9bn short tonnes. The country produces about 1.3m short tonnes of coal annually and consumes about 1.5m short tonnes, making it a small net importer of coal.

Demographic trends and intensified industrialization have caused electric power demand to grow by 8 percent per year. The government’s goal of 53,000 megawatts of installed capacity by 2010 is to be reached by bringing on line new gas-fired plants financed by independent power producers, including those with foreign investment backing, and by adding hydroelectric and nuclear power generating capacity. It has also been estimated that Iran has the potential to produce at least 6,150 MWh of electricity by Wave power from its coastline on Persian Gulf alone. Iran is also experimenting with electricity generation from organic wastes and plans to build power plants using sewage and organic waste of domestic and industrial origin as fuel. Another area in which there is ongoing research is assessment of Iran's tidal power potential. With about 300 clear sunny days a year and an average of 2,200 kilowatt-hour solar radiation per square meter, Iran has a great potential to tap solar energy.