TEHRAN - The deputy for project development at Iran's Thermal Power Plants Holding Company (TPPHC) announced that by the summer of 2025, approximately 3,500 megawatts (MW) of new power plants (excluding renewable energy plants) will become operational.

Azim Etemadi, deputy for project development at the TPPH, told IRIB that the slow progress in constructing combined-cycle power plants is due to high costs. He explained that while gas power plants operate at 34 percent efficiency, their steam sections have yet to be built because constructing the steam section costs at least twice as much as building the gas section.

Etemadi added that constructing gas power plants takes 12 to 18 months, while steam power plants require about 36 months. He highlighted that steam power plants do not consume fuel, and given the energy imbalance in the country, constructing such plants would increase electricity production.

He said plans are in place to build 2,520 MW of power capacity in the public sector, with permits issued by the Economic Council under Build-Operate-Transfer (BOT) contracts.

In the private sector, permits were previously issued by the Economic Council for constructing 1,920 MW of steam power plants. However, investors requested revisions due to the long timelines and high costs of such projects. Necessary amendments have been made and submitted to the Economic Council for approval.

Etemadi noted that outstanding debts have hindered the implementation of these projects. To address this, a "green board" is being designed to attract private investments in the steam sections of gas power plants (combined cycle).

He further announced that within two weeks, capacity certificates will be offered on a forward-selling basis to help finance investors in steam power plant projects.

Regarding construction costs, the official stated that building a gas power plant costs €350 per kilowatt, while constructing the steam section costs between €500 and €550 per kilowatt. He clarified that private sector investors are responsible for funding the construction of the steam sections.

EF/MA