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Azerbaijan, Iran sign agreement on electricity sale

13 April 2018 12:00 (UTC+04:00)
Azerbaijan, Iran sign agreement on electricity sale

By Rashid Shirinov

Azerbaijan’s main electricity producer Azerenergy JSC and Iran’s state energy company Tavanir signed an agreement on the sale of electricity, Azerbaijani Energy Ministry informed on April 12.

The agreement was signed within the visit of the Azerbaijani delegation led by Deputy Energy Minister Natig Abbasov to Iran.

During the visit, a meeting was held in the Iranian Energy Ministry, where the sides discussed issues of ensuring electricity trade between the two countries, regulating the joint activities of the energy grids of Azerbaijan, Iran and Russia, as well as the transit of energy to third countries.

Further an agreement on the sale and purchase of electricity between Azerenergy and Tavanir, a company that produces, distributes and transmits electricity in Iran, was signed by Azerenergy President Etibar Pirverdiyev and Head of Tavanir Arash Kordi.

Under the agreement, Azerenergy will start importing 180 megawatt (MW) of electricity for the regions of Mugan and Astara in June 2018.

The sides also agreed to hold a trilateral meeting in Baku on April 26 on the realization of the process of uniting the energy grids of Azerbaijan, Iran and Russia, as well as discussed the development of the Iran-Azerbaijan-Georgia energy corridor.

Azerbaijan and Iran currently enjoy a total capacity of 700 MW for power exchange. During the recent visit of President Hassan Rouhani to Baku, Iran concluded an agreement with Azerbaijan for the purchase of 150 MW of power.

Iran’s nominal capacity for power generation currently stands at 78,421 MW following the connection of a number of power plants to the country’s national grid. The country's capabilities in the area of power generation have significantly developed over the past four decades, thus making Iran the top producer of electricity in the region.

Meanwhile, Azerbaijan enjoys a capacity of 7,172 MW. The transmission lines of both countries were synchronized in August 2016. Azerbaijan has already turned from a country importing electricity to the country exporting it. The export potential is growing, since the country enjoys the relevant infrastructure for transmission of electricity.

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Rashid Shirinov is AzerNews’ staff journalist, follow him on Twitter: @RashidShirinov

Follow us on Twitter @AzerNewsAz

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