Iran plans to construct a combined cycle power plant with the capacity to generate 500 megawatt of electricity in the Qeshm Island, located in the Gulf.
The facility will also have a desalination unit to sweeten the water, Iran's IRIB News Agency reported on Dec. 9.
Qeshm Free Zone Organization, Iran Power Plant Projects Management Company (MAPNA), and Qadir Company signed a trilateral contract for construction of the plant on Dec. 9.
The facility is expected to come on stream in 3 years.
The gas unit of the plant will be completed in 24 months. The steam unit is expected to come on stream six months later.
Deputy Iranian Energy Minister Houshang Falahatian said on Dec. 8 that Iran's power consumption rises by 7 percent annually, so the country needs to add 5,000 megawatt to its power plants' production capacity each year.
"Iran needs to double its electricity generation capacity every 10 years," he said.
The official went on to note that the ministry plans to annually construct some renewable energy production units with the capacity to produce 1,000 megawatt of electricity.
"We also plan to annually convert several gas power plants with the total production capacity of 17,000 megawatt to combined cycle plants," he explained.
Iran seeks to become a major regional exporter of electricity and has attracted more than $1.1 billion in investments for the construction of three new power plants.
Iran currently trades power with Turkey, Armenia, Turkmenistan, Azerbaijan, Pakistan, Afghanistan, Syria, and Iraq.