By Pramod Raj Sedhain.
Iran’s wider regional role and influence has reached new height after its use of electronic potential capacity. Tehran’s energy and electric sector have been the most profound weapons to bolster its regional influence. Energy superpower Iran has not only a different influence in the region but also emerging as an exporter of electricity. One of the soft but strategic and valuable tools is to export power to energy-hungry neighbors and possible extension far from the border.
Iran is the largest exporter and importer of electricity in the Middle East. Iran has power trade with Turkey, Armenia, Turkmenistan, Azerbaijan, Pakistan, Afghanistan, Iraq and Syria. Iran plans to export its electricity to Europe via Armenia, Russia, and Azerbaijan. Its plan to trade 500 Megawatt of electricity with Russia will be transferred through Azerbaijan. The plan is at its final stage. Iran has also plans to supply power to Pakistan, India and Iraq as well through Turkey, Syria and Lebanon.
Recently Iranian Tasnim News Agency quoted an Energy Ministry official saying that the country has the capacity to export $20 billion worth of electricity and power plant equipment. The figure is nearly the country’s current oil exports. Since 2007 to 2013, Iran’s electricity trade surplus has increased by six folds and every year Iran has boosted its supply unprecedented level. Iran’s electricity industry ranks first in the Middle East in terms of electricity generation and 14th in the world.
Iran’s production capacity has surpassed 71,000 megawatt hours and is the second-largest natural gas reservoir and world’s fourth-largest proven oil reserves. More than 70 percent of the electricity generated in Iran is produced by natural gas. The important factor is that almost 99 percent of the equipment required for power generation like production of power plants, water and electricity equipment, electricity meters, turbines, cables, technical and engineering services for transfer and distribution is domestically designed and produced. Iran’s electricity sector will gain substantial regional influence and power. Expanding market opportunities show Iran’s bright future in this sector.
Electricity export to power hungry nations not only Iran’s neighbors in the Middle East but its influence crosses beyond the borders. Recently Pakistan and Iran are set to sign an initial deal for the supply of 1,000 Megawatts of electricity to overcome the crippling energy crisis in Pakistan. According to Pakistani media report, Pakistan will be paying 8-11 cents per unit of electricity under the formula agreed with Iran. Besides the 1,000MW for which a MoU has been signed, Iran has also offered to export a huge quantity of 10,000MW to Pakistan. A 700-kilometre transmission line of 500 kilovolts will also be laid from the Pakistan-Iran border to Quetta.
Pakistan is keen to collaborate with Iran’s electricity sector. In 2009, Iran and Pakistan signed a MoU for the construction of a 170-km transmission line from Iran and the provision of initially importing 1,000 MW of electricity. Tehran has agreed to invest US$50 million in this project. Iran also seeks to export 10,000 MW to Pakistan but the international sanction has obstructed this deal. Iran also plans to deliver 6,000 MW through Pakistan to India (2,000 MW will be kept by Pakistan and 4,000 MW will be delivered to India). Iran will become Asia’s huge electricity supplier if nuclear deal is reached. India is equally interested to cooperate in the pipeline from Iran.
Iran has initiated electricity exports to Iraq significantly. Cooperation with Iraq has also been used to set up a transmission line from Iran through Iraq to Syria as well mission in Lebanon. According to an agreement signed in mid-2012, Iran seeks to export 50 MW in its first phase to Syria, with the goal set at 200 MW. Iranian News agency Tasnim said Iran’s daily electricity exports to Iraq amount to 1300 MW and total annual exports are valued at one billion dollars. According to Fars, an Iranian news agency, a new agreement between Iran and Iraq intents to export 1000-1500 MW of electricity to Iraq during next summer. Similarly, Iran is exporting an average of 30 MW of electricity to Afghanistan.
Regional rival Turkey also depends on Iran’s energy. New electricity transfer line in northern Iran boosted exports to Turkey to 400 MW per hour. Iran is the top supplier of Turkey’s crude oil and natural gas. According to recent report on Iran’s energy production, Iran could provide more than 15 percent of total needed electricity in the Middle East and North Africa within a few years. Between 2000 to 2010, the overall electricity generation capacity in Iran increased at an average annual growth rate of 7 percent. Iran seeks to become a major exporter of electricity. According to Energy Ministry figure in 2013, Iran annually exports 8 billion kilowatt of electricity to neighboring countries, which was about 3 percent of the country’s total output.
Iran’s unique geographical position also favors for different renewable resources. Iran has emerged as one of the world’s largest dam builders in recent years. According to Press TV online on October 24, 2014, Iran’s produces 10,000 MW of electricity from hydropower plants. The country’s hydropower production capacity has increased every year. Iran’s invests millions of dollars for planning new hydropower projects. Iran is currently prioritizing on hydroelectric development. The country will undoubtedly become self-sufficient in power plant construction and meets the requirement even for the neighboring countries.
Renewable energy projects in Iran have boomed in recent years. The country’s new goal is to add 5,000 MW of new solar energy and wind energy capacity by 2018. Iran is one of the best places on earth to host solar panels and the government is making efforts to bolster self-sustaining solar power in remote areas. Ninety percent of the country has enough sun to generate solar power 300 days annually. According to Associated Press report on 2014 July, Iran’s government spent $60 million (Dh220m) in 2014 to solar projects compared to $12 million in 2013.
Iran finalized solar panels at some 1,000 locations across Iran. Government-subsidized solar panels on the rooftops of rural areas homes, mosques, schools and government buildings have been installed. According to Press TV, Iran has already 520 MW designated and 900 MW of contracts have been signed by solar which was 53 MW in 2005. Similarly, Iran is also planning to generate wind energy, which has capacity of more than 130MW. Iran has also a potential of 9th largest geothermal energy production.
Iran’s long term regional strategy has expanded sharply and it is on its final stage. Iran’s energy plays a vital role for its power and pride. Its energy utilization will be a tool to expanding its influence not only the region but beyond the borders and across the Persian Gulf. Final nuclear deal with the West will surely end the isolation which will help Iran to head towards major victory. Regional allies will exclusively depend on Tehran. Iran’s deterrence-based military doctrine is shifting by neighbors’ dependency.
