Iran’s electricity sector facing massive fuel bill over winter
Iran will be forced to forgo some $5.6 billion in hard currency revenues over the cold winter months as it should provide enough fuel supplies to power plants that normally burn natural gas to generate electricity, shows a report.
The Wednesday report by Fars news agency said that the Iranian government had decided to stop exports of gas oil and mazut to respond to growing demand for fuel in the country’s power plants over the winter months.
The report cited figures by the Iranian Energy Ministry showing that the country will need 7.23 billion liters of gas oil and some 4.83 billion liters of mazut to keep power plants running in the November-March period when gas supplies to power plants are reduced to respond to demand in the household and commercial sector.
It said the amount of fuel could have generated $5.6 billion in hard currency revenues for the country if the government had continued to export them.
Tables in the report showed that demand for alternative fuels in Iranian power plants will peak at 120 million cubic meters per day in January.
Estimates suggest that mazut will account for more than a third of the alternative fuel supply at Iranian power plants over the winter months.
That could cause major environmental issues for the country despite promises by the government that it will refrain from supplying heavy fuel to power plants in major population centers.
Iran has seen a major increase in demand for natural gas in recent years. That comes despite a rapid growth in the country’s production of gas which is expected to reach over 900 million cubic meters per day over the upcoming winter months.
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