1000MW Iran electricity to Pak plan hits price snag

[Salman]

1000MW Iran electricity to Pak plan hits price snag

Islamabad—The project to import 1000 electricity from Iran has run into snags as Iran wants to install 1400 MW power project in Zahidan near Pakistan border from where the electricity to be transmitted to national grid of Pakistan, not on the basis of local Iranian oil price but on international fuel cost price, a senior official told Pakistan Observer Monday here.

“Earlier Tehran had indicted that Pakistan will be provided the electricity to be generated in a thermal price based on the fuel price in Iran.”

Iran is already extending the electricity of 40 MW to Pakistan for Gawadar.

With a view to importing the 1000 MW of electricity, 7500 kilometers long 500 KV transmission line is needed to be laid down. On behalf of Pakistan, NesPAK (National Engineering Services Pakistan) and from Iran SUNIR are appointed as consultants to make the feasibility for laying down the said transmission line to materialize the project and to this effect Pakistan had submitted the feasibility report to Iranian authorities one year back. But Iranian side is silent since then about that laying down of the transmission line.

The official said that Iran has no electricity generation houses near Pakistan border. However, Iran is rich in electricity in other parts of the country and if the electricity is importing from other parts of Iran which is far away from area bordering Pakistan , the line losses would increase manifold and the rate of the electricity would also be unaffordable.

So Iran needs to install the power plant near Pakistan border to materialize the project to import 1000 MW of electricity. To a question the official said that

Iran is already supplying power to Syria , Tajikistan , Iraq etc.

Iran had promised in December 2008 that it would extend credit of US $ 55 million to Pakistan for construction of 70 kilometers transmission line in Pakistan for more export of 100 MW of electricity.

Since then no remarkable project is made yet. Export Development Bank of Iran, under the agreement agreed in December 2008, will be extending credit of US $ 55 million to NTDC or PEPCO for construction of transmission line in Pakistan (70 KM).

The balance 50 KM on the Iranian side shall be constructed by Iran.