Iran: Three power exchange plans underway with neighbors
Electricity imports from Azerbaijan, Armenia, Turkey during peak load periods
An official with the Ministry of Energy announced three plans for electricity exchange with neighboring countries to manage peak demand in the current Persian calendar year (began on March 20, 2025).
Director general of the foreign trade office of Iran’s Power Generation and Distribution Company (TAVANIR) highlighted ongoing projects for cross-border electricity exchange aimed at addressing peak summer demand and expanding regional energy infrastructure, ILNA reported.
“Numerous measures are underway to facilitate electricity exchange with neighboring countries, both to manage the upcoming summer peak load and to develop energy transmission infrastructure and regional cooperation,” Mehrdad Eqlimi said.
Eqlimi reported the completion of the third 400-kilovolt Iran-Armenia power transmission line and efforts to secure an additional 400 MW of electricity imports from Iran’s northwestern neighbor during peak periods.
“To develop energy transmission infrastructure, the third 400-kilovolt Iran-Armenia power line has been constructed up to the Iranian border, with the external section of the project being implemented by an Iranian contractor using financing from the Export Development Bank of Iran,” he added.
According to the official, necessary measures, including accelerating the completion of the external section, finalizing agreements to increase imports by 400 MW during peak periods, and establishing a monitoring plan to ensure timely project completion are currently prioritized.
The TAVANIR chief also said, “Negotiations with the Republic of Azerbaijan to import 140 megawatts of electricity this summer, as well as to sign a new annex for electricity imports during this summer, are being pursued.”
“The Azerbaijani side has also welcomed a proposal to hold in-person talks in Baku to explore connecting the power grids of Iran, Azerbaijan, and Russia,” he added.
On Turkey, Eqlimi outlined coordination efforts to exchange electricity via a Back-to-Back (BtB) system, targeting up to 300 MW this summer.
“An agreement to operationalize interconnection lines between the two countries has been signed. However, despite TAVANIR’s readiness to commence electricity trade — including appointing an Iranian broker — the Turkish side has delayed allocating capacity and insists that Iran cover the costs of the Van HVDC (high-voltage direct current) station, a demand Iran has not accepted,” he said.
“Negotiations continue to resolve these issues, including finalizing allocated capacity and addressing investment cost disputes. Additionally, discussions are ongoing to secure Turkey’s response, select a suitable broker, and establish operational infrastructure to begin exchanges.”