Iran Electricity Sector

During the past decade by developing the research and innovation in Iran electric power industry, the bases for development and expansion of the existing capabilities and creating new capacities in innovation has been prepared throughout the electric power industry. Here is a brief review of Iran electricity industry:




Iran electrical energy gross generation has been 307968 GWh in 2017 which has a growth of 6.5 percent compared to 2016 43.5 percent of total generation was supplied by MOE (Ministry of Energy) power plants and the remaining 56.5 percent by non-MOE power plants. From the total energy generated, the share of thermal plants was 92.5 percent, hydro plants reached 9.4 percent and nuclear and renewable power plants' share was 2.6 percent.

Iran transmission network voltages are currently 400 and 230 kV. Recently, lines and substations projects with 765 kV voltage (HVAC') from country's south to center regions have been assigned and is passing its study stages. Diagram of extension-trends of Iran power transmission lines is as follow:



Iran Grid Management Company is direct responsible for electricity transmission in Iran electricity network. Mission and Objectives of IGMC:

Reliability management, optimum utilization of generation and transmission resources
Providing open access to the electricity network
Making provisions for fair competition and competitive transactions by establishing, operating, and developing electricity market and power exchange.



Due to extent and geographical position of Iran in the region, Iran's electricity grid can actually undertake the centrality and dispatching of neighboring countries electrical grids since Iran electric power industry has a lot of experience in connecting and exchanging electrical energy with electrical grids of neighboring countries such as Republic of Azerbaijan. Armenia. Turkey. Turkmenistan, Afghanistan, Pakistan and Iraq. Currently, seven countries' electrical grids are connected to Iran's electrical network and this is the same as what occurred in the past for Europe.

39 Electric distribution companies throughout the country are in charge of electric power distribution. The below figure shows distribution level lines statues during past years at a glance:



In 2017, electric energy consumption has been increasing 7.4 percent comparing with it 2016 and reached 255026 Million kWh.

Investment in Electricity Sector

Electric power industry as a major industry is a non-profit manufacturing company and considering the importance and role of electricity in economic and social activities and considering that the minimum period of construction and operation of a power plant is 3 to 5 years, to maintain and provide optimal electric power services, the electric power industry needs a coherent and dynamic investment.


Electricity Transactions in Iran

Electricity trading in Iran is in the form of the day ahead electricity market, Energy Exchange and bilateral contracts, the share of each of these sectors since the beginning of the stock trades in 2013 is:


Subsidies of Electrical Energy

At present, most of Iran electricity subscribers take advantage of subsidies. The highest subsidy is related to the agricultural sector. In 2017, the electricity cost, considering the subsidized fuel cost, was 960 Rials/kWh (based on domestic prices) and the average selling price of electricity was 679 Rials/kWh.