Iranian manufacturers will invest nearly $7 billion in the next three years to build new power plants to respond to their growing electricity needs.
A senior official in the Iranian industry ministry (MIMT) said on Monday that the investment would add around 10 gigawatts (GW) to Iran’s current electricity generation capacity of 88 GW.
Seyyed Mehdi Niazi, who serves as deputy minister for planning and projects at the MIMT, said that power plants planned to be built by manufacturers across Iran would start supplying electricity to the national power grid by 2024.
The comments came after the MIMT and the Iranian Energy Ministry signed a document to finalize the massive investment project.
Homayoun Haeri, a deputy energy minister who signed the document, said that the Iranian manufacturing sector is responsible for nearly 37% of the total demand for electricity in Iran with an estimated consumption of 100 megawatt hours reported over the calendar year to March.
Iran was forced to cut electricity supplies to some major industrial units over the summer to prevent power cuts in large cities and towns.
The outages even caused price hikes for some major manufacturing products, including for cement and steel.
A new administrative government that took office in August has vowed that steelmakers and cement producers will have access to stable supplies of electricity in the upcoming months.
Iranian energy minister Ali Akbar Mehrabian said on Monday that the government would press ahead with plans to increase electricity generation capacity both in the thermal and renewable sectors.
Mehrabian said his ministry had set a target of creating 35 GW of new capacity in the Iranian electricity generation sector within the next four years.