In 2004, Iran generated 156 billion kilowatthours (Bkwh) and consumed 145 Bkwh. 146 Bkwh was generated by conventional thermal electric power, and the remaining 11 Bkwh was generated by hydroelectric power. As of 2004, EIA shows no significant generation from nuclear electric power. Iran will need to increase its electricity generation to meet its rapid consumption growth. The IEA estimates that energy intensity in Iran is 30 percent higher than in OECD countries. According to FACTS Global Energy, Iran’s electricity demand is projected to grow at 6 percent per year through 2015.
In Iran multiple sources of power generation are being explored. One option for meeting electricity demand includes using fuel oil for power generation, particularly efficient for plants located close to oil refineries. Iran also plans to boost natural gas production use to meet its electricity demand. Hydroelectric plants and the controversial nuclear power program will also be part of Iran’s overall electricity plan if technological advances, investment, and political pressure allow. State-owned Tavanir and other regional subsidiaries dominate the power sector, and are responsible for power generation, transmission, and distribution. However, the Iranian government has moved to attract private investment in its electricity sector.
According to Middle East Economic Survey
(MEES), Pakistan’s governmental Central Development Working Party has approved a plan to import 100-400 MW of electric power from Iran for up to 6.3 cents per kwh over 30 years. Iran and Turkey plan to build three power plants together using natural gas to generate 6,000 MW, and they plan to build joint hydroelectric plants starting in 2008. Iran’s Deputy Energy Minister Mohmmad Ahmadian stated that Iran would like to link with Russia’s electricity network, though such a project would require at least two years to fulfill. Iran has expressed interest in increasing supplies to Azerbaijan after the necessary infrastructure is built.