With 546 megawatt capacity, the plant will help develop regional power infrastructure, especially in the northeastern province, Energy Ministry Reza Ardakanian was quoted as saying by IRNA.
A joint venture of state and private firms, the project is expected to cost $333 million and be completed by 2022.
It will supply power to industries on the west of the province where there are two cement factories, a steel factory, a concrete plant, a silicon production plant as well as other factories, according to Financial Tribune.
The initiative will include two thermal units with a capacity of 183 MW each and a 180 MW steam unit, Ardakanian said.
Regarding installed electricity production capacity, the minister said it was “7,000 megawatts 40 years ago, but has reached 82,000 MW now -- a 12-fold increase.”
“Barely 4,000 rural areas were connected to the power grid in 1979. Today electricity is supplied to 57,000 villages.”
Ardakanian pointed to renewable energy plans and expressed readiness to support domestic and foreign companies interested in funding projects in renewable energy sector.