Iran to increase the pace of power privatisation

• 11 years ago (2013-07-11)
• Junior Isles

Middle East 326

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Iran will privatise a further 22 power plants during the coming Iranian calendar year, ending March 20, 2014, according to power sector privatisation project manager Bahman Allahmoradi.

Twenty two plants with a generating capacity of 19 500 MW have already been privatised, Allahmoradi said. Shares of the 22 other power plants are valued at 180 trillion rials ‒ roughly $15 billion.

Iran has already privatised eight power plants during the calendar year ending March 20, 2013, Deputy Energy Minister Mohammad Behzad said.

The Iranian private sector produces 40 per cent of the country’s total electricity output Behzad said, and aims to reach 60 per cent by the end of the current year.

Iranian Energy Minister Majid Namjou had previously said the Iranian constitution required that the generation and distribution sectors of the power sector should be privatised, while the transmission sector remained in state hands.

Power generation capacity in Iran has grown by seven per cent annually, twice the global average, over the past 10 years.

Tehran is seeking to become a major regional exporter of electricity and has attracted more than $1.1 billion in investments for the construction of three new power plants.