The current Iranian fiscal year national budget includes 100 trillion rials (about $3.5 billion) to be allocated to converting existing gas power plants into combined cycle plants. The news came in an announcement by Alireza Daemi, deputy minister of energy in planning and economic affairs said. He pointed out that the current gas power plants suffer from very low performance. This campaign of conversion will create more fuel efficient units, from 31% currently to an expected 45%.
He further stated that for the current Iranian fiscal year (which started 21 March), a budget of 11 trillion rials ($380 million) is to go into 37 water/electricity projects and 12 power plants. This is an 18 % increase compared to the comparable budget in 2014-5.
Iran aims ultimately to convert all its gas thermal power plants into CC. Currently gas plants provide about 25 % of the country’s total power generation capacity.
According to a 7 April report, Iran has increased its generation capacity by 2.871 GW during the year, a figure that includes about 1.6 GW in gas power plants, a 640 MW combined cycle power plant, and a 520 MW hydroelectric plant. However for reasons that are not given the actual power generation level increased by only 1.98 GW.