Chitchian was quoted by FARS News Agency as saying that construction has begun on Zarand small-scale combined cycle power plant.
Although construction of smaller power plants has been ignored for years, the nation is now seeking to give special focus on that.
The mini power plants can play crucial role in boosting and saving energy, Chitchian said adding that: "We are able of saving energy consumption by 20% (through construction of mini power plants)."
Tavanir Company managing director Homayoon Haeri said that the Iranin Ministry of Energy has plans to make development of mini power plants a top priority in its agenda.
Haeri said that the small-sized power plants have ability to generate over 500MW of electricity every day.
Tavanir is a unit of the energy ministry.