IFP Exclusive

Iran takes bold step to facilitate investment in its power plants

Iranian Energy Minister Abbas Aliabadi held a meeting with the chairman of the National Development Fund of Iran (NDFI) Mehdi Ghazanfari to remove the obstacles in drawing investment in the private sector and expand its power plants.

Important decisions were made during the meeting, including the establishment of a special working group to finance power plants and remove obstacles facing the investors, the NDFI’s information center reported.

Another major agreement in the meeting was granting licenses to power plants financed by the development fund.

According to the deal, the Iranian Ministry of Energy will allow the power plants to sell their generated electricity at the market price, a move which is aimed at creating economic incentives for the investors and increasing revenues through power plants.

“The license allows the power plants to supply the generated electricity to the customers in competitive conditions and at the prices they set,” the information center reported.

The National Development Fund of Iran is a sovereign wealth fund independent of the country’s budget.

It was founded in 2011 with the goal of transforming oil and gas revenues to productive investment for the future generations.

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