Iran's power plant capacity to exceed 100,000 megawatts

March 5, 2025 - 14:11

TEHRAN - Iran’s Energy Minister said the country’s power plant capacity will increase by around 10,000 megawatts by next summer (starting in late June)

Abbas Aliabadi told IRIB that electricity consumption fluctuates significantly throughout the year, with a difference of about 35,000 megawatts between peak summer and winter demand.

He noted that such a consumption gap is unprecedented in Iran’s climate, adding that if cooling-related demand is reduced by one-third, the current 20,000-megawatt supply-demand imbalance can be effectively addressed.

The official said the Energy Ministry has devised plans for both thermal and renewable power plants while also focusing on efficient consumption. “We have appointed dedicated managers for each sector, and a task force is monitoring progress to ensure we reach our targets,” he said.

One of the ministry’s key initiatives is converting gas-fired power units into combined-cycle plants, Aliabadi said. “These plants operate without additional fuel consumption and achieve efficiency rates of over 80 percent, whereas solar and wind power plants typically reach 40 percent to 50 percent efficiency.”

Although combined-cycle units require more time and higher initial costs to build, they are ultimately more reliable, the minister added.

The minister also stressed the importance of energy conservation. “I urge the public to use energy responsibly, as emphasized by the government, the system, and the global community. Excessive consumption contributes to global warming, so reducing energy use has both local and global benefits.”

As winter comes to an end, Aliabadi said, “With a little cooperation from the public, we will navigate this period without difficulty and prepare for summer demand.”

He acknowledged Iran’s high energy and water consumption intensity, saying, “Unfortunately, we are not in a good position in terms of energy and water use.”

On the significance of combined-cycle power plants, the minister said that in the past, incentives were offered to encourage their development, but economic challenges in the industry prevented full implementation. “We are now working to create the right conditions for their expansion.”

He added that the government has outlined short-, medium-, and long-term plans for expanding combined-cycle plants. “Facilities like the Ferdowsi and Assaluyeh power plants will be completed next year, while others will be commissioned in subsequent years.”

Aliabadi emphasized that the Energy Ministry does not supply the entire electricity market. “We provide power for consumption levels defined by law, while the rest is supplied through the energy exchange. Investors can convert their power plants to combined-cycle systems and sell electricity on the exchange. Those with renewable energy facilities can either export their electricity or sell it to industries, generating substantial revenue with minimal risk.”

The minister underscored Iran’s strong position in the power sector. “Iran is among the world’s top countries in electricity production. Sanctions cannot hinder us—we are constructing power plants in various locations and are a serious competitor to major nations. Our plants are cost-effective, high-quality, and built on schedule.”

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