Hasan Ali Taghizadeh, Chairman of the Board of the Electricity Industry Syndicate, introduced the reform of the electricity economy as a fundamental condition for resolving the imbalance and attracting investment in this field. He stated that if the necessary reforms are made, it can be hoped that a significant portion of the country's electricity imbalance will be resolved in the next four to five years.
Concerns About Dependence on Thermal Power Plants
Taghizadeh, referring to the decrease in gas production due to the damages from the imposed war and the over 90% dependence of the country's electricity production on thermal power plants, emphasized the importance of managing consumption and securing alternative fuel. He mentioned that currently there are about 40,000 megawatts of combined cycle power plant capacity and 24 to 25 thousand megawatts of gas power plant capacity in the country. He also pointed out that dual-fuel power plants can use diesel as an alternative fuel and, in coordination with the Ministry of Energy, liquid fuel reserves for these plants are projected to last for an average of about 20 days of operation.
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Electricity Allocation to Industries and the Necessity of Cooperation
The Chairman of the Board of the Electricity Industry Syndicate referred to a 40% increase in electricity allocation to industrial subscribers this summer and added that the Ministry of Energy's approach in winter will also be to maintain the stability of electricity supply for residential subscribers while allocating the maximum possible electricity to the industrial sector. He also emphasized the necessity of cooperation between residential and industrial subscribers in reducing unnecessary consumption.
Taghizadeh, referring to the damages from the 40-day war on the electricity industry's infrastructure, stated that about 4,200 megawatts of the country's power plant capacity has been damaged. He noted that the power plant manufacturing industry in the country has become localized and the necessary equipment for this industry is produced domestically. He also mentioned the time required to build new power plants, stating that constructing a gas power plant with two 183-megawatt units takes about 14 to 20 months.
The Necessity of Economic Structure Reform
Taghizadeh emphasized that the electricity imbalance is not due to a lack of technical knowledge, but its root cause lies in the economic structure and the decrease in investment motivation. He specified that to maintain the stability of electricity supply, the country needs to add about 5% to its production capacity annually, while the government's investment limitations increase the need for private sector participation.
The Chairman of the Board of the Electricity Industry Syndicate pointed to the investment problems in 12 power plants with private sector investment and added that without reforming the economic structure, sustainable development of power plant capacity will not be possible. He concluded by emphasizing the necessity of accelerating structural reforms and the government's exit from electricity trade to improve the electricity imbalance situation.
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