JICA in talks on renovation of Iranian power plants

• 6 years ago (2018-01-24)
• David Flin

Gas 369 Middle East 309

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Hamidreza Azimi, Deputy for Planning with Iran’s Thermal Power Plants Holding Company (TPPHC) said that the Japan International Cooperation Agency (JICA) is in negotiations to finance renovation of major power plants in Iran. He said that he expected an agreement to be signed by March 20.

Azimi said: “Reconditioning two large thermal power plants, namely Shahid Rajaee in Qazvin Province and Shahid Mofatteh in Hamedan, is at the top of TPPHC’s agenda.” He said that permits have been issued by the Iranian Government’s Economic Council, and if talks are successful, JICA will provide TPPHC with low-interest banking facilities with a 20-year repayment period. He said: “The initiative is aimed at not only boosting the efficiency of power stations, but also minimising maintenance costs and increasing the plants’ lifespan.” He added that the efficiency of Iranian power plants currently stands at 37.8 per cent. The Government plans to achieve 40 per cent by 2022.

Technical talks are underway with JICA to rehabilitate the plants in two phases.

According to Mohsen Tarztalab, the head of TPPHC, Iran has decided to phase out inefficient power plants, improve the aging electricity infrastructure, and move towards modern power production technology. He said: “Under regulations outlined by the Energy Ministry, all new power plant units must have an efficiency of 58 per cent and above.”