Iranian government has started working on its first power plant project, a 1,000 MW open-cycle gas-fired station at Shiraz, in association with the local developer Iran Power Management Co. (Mapna) with funds being supplied by Dubai Islamic Bank. The representative of Mapna affirmed that Iran is constructing 22 power plants and has another 10 projects under assessment.

Meanwhile, as per the long term energy conversion agreements, electricity will be sold to a single off taker, Tavanirz. However, eventually the government wants to set up a viable wholesale market to directly sell to major end-users.

Sadeghi said that distribution networks with nations such as Azerbaijan, Afghanistan, Iraq and Turkey are already in place, and new connections are proposed, including a marine link to Dubai.

He added that Iran is keen to extend cooperation with Pakistan in the power segment.