Iran Power Industry: Exports Up, Imports Down

EghtesadOnline: The pattern of power exports over the past three years is worthy of appreciation because, among other things, it indicates judicious domestic electricity consumption.

News ID: ۷۴۹۴۹۳

20 January 2020

Consumption declined by an estimated 4,000 megawatts last summer thanks to the cooperation and electricity use by  households along with the agro and industrial sectors, according to Financial Tribune.

Based on data from the Statistical Center of Iran, Tavanir (Iran Power Generation, Distribution and Transmission Company) exported 2.9 billion kilowatt hours of power to neighbors, namely Iraq, Pakistan and Afghanistan between June and September 2019, ILNA reported.

Although domestic demand also peaked in the same period (summer season), the sate-run Tavanir managed to hit a record on the export front.

The figure (2.9 billion kWh) indicates a rise of 190% compared to the corresponding period in 2018.

Giving a breakdown, the statistical center said between September and December 2018, exports reached 1.4 billion kWh -- up 10% compared to the same period in 2017.

Moreover, Tavanir sold 1.9 billion kWh of power between December and March, 2018 that was 400 million kWh more than the corresponding period in 2017.

Iran exported 2.1 billion kWh of electricity between March and June 2018.

Annual power generation in Iran is 77,000 MW and average annual export is around 10 billion kilowatt hours, which can be increased further if domestic subscribers consume prudently.

Downward Trend

The other good news is that power import declined in the three-year period.

Between June and September 2017, 2018 and 2019, Tavanir imported around 1.2 billion kWh, 700 million kWh and 300 million kWh, respectively.

The need to import power (from Armenia and Azerbaijan) was of the descending order falling 300% in the hot summers.

Referring to import figures in the fall, winter and spring in 2017 and 2018, statistics show an average 30% decrease, down from 900 million kWh in 2017 to 700 million kWh in 2018.

Data released by the Trade Promotion Organization of Iran show that the treasury earned $4 billion from electricity exports between 2013 and 2018.

Likewise, Iran exported over 42,926 billion kilowatt-hours of electricity to neighbors during the period.

The country trades electricity with four neighbors on its northwestern and western borders, namely Azerbaijan Republic (including Nakhchivan Autonomous Region), Turkey, Armenia and Iraq.

Under swap deals, Iran exports electricity to Armenia and Azerbaijan in winter and imports when domestic demand soars in summer.

Grid Sustainability

The agreements are in line with policies to increase power grid sustainability via joint ventures to synchronize the electricity network with regional countries.

A joint venture is underway to construct the third power transmission line from Iran to Armenia.

According to reports, the new link that has not been completed yet is part of an agreement signed between Iran, Russia, Armenia and Georgia to synchronize their power grids, paving the way for electricity exchange between the two states.

Iran is the largest exporter and importer of electricity in the Middle East. Its power industry is present in over 40 international markets as an exporter of goods and technical services under engineering, procurement and construction contracts.

Iranian contractors have 58 projects in other countries, including Turkmenistan, Afghanistan, Azerbaijan, Armenia, Pakistan, Tajikistan, Uzbekistan, Sri Lanka, Uganda, Nigeria, Ethiopia, Oman and India.

Iran is among the six countries that have the technical expertise to build dams and hydropower plants.