IMIDRO, NDF Move to Shield Iran's Mining Industry from Power Cuts

Iran’s mining and metals sector is seeking to avert electricity shortages through long-term renewable power purchase agreements, following talks between the state mining agency IMIDRO and the National Development Fund (NDF).

At a meeting bringing together renewable power investors, mining and steel producers and lenders, the heads of the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) and the fund outlined a roadmap for signing long-term contracts to supply clean electricity to energy-intensive industries, aiming to reduce production losses from summer power cuts.

IMIDRO Head Mohammad Masoud Samiei-Nejad said electricity generated by private renewable plants is priced above household tariffs, making industrial users the most viable long-term buyers. He proposed negotiated pricing to secure stable power supplies for mining companies while guaranteeing demand for renewable producers.

He said the priority was to finalize a clear framework to enable the rapid conclusion of 25-year power purchase agreements, adding that IMIDRO was ready to sign such contracts on behalf of its subsidiaries. Investment in special economic zones including Bandar Abbas, Makran and Lamerd has been prioritized, he said.

Samiei-Nejad said IMIDRO and the National Development Fund would act as facilitators through a joint task force, encouraging long-term cooperation by reducing concerns over lost revenue for both producers and consumers.

National Development Fund head Mehdi Ghazanfari said part of the surplus electricity generated by investors receiving fund financing could be sold. He said two groups of investors were developing about 7,000 megawatts of solar and wind capacity through equipment supply and construction, alongside a further 8,000 megawatts through installation contracts.

He added that companies holding valid electricity sales contracts could use them as collateral to obtain financing from the fund.

Executives from major mining and steel companies raised concerns over recurring power outages during peak summer demand, production losses and export currency settlement rules, while renewable investors and the head of Tejarat Bank outlined financing terms, pricing mechanisms and plans to add new generation capacity. - Tehran Times