Islamic Republic of Iran Ministry of Energy Opportunities, Incentives and Economic Feasibility Studies Water and Power Industry Investment Plans 2nd Edition February 2015 Department for Planning and Economic Affairs Water and Power Marketing & Privatization Regulatory Office Competitiveness and Investment Support Promotion Group Journal No.104 Opportunities, Incentives and Economic Feasibility Studies; Water and Power Investment Plans Contents Introduction .................................................................................................................................................. 4 1-Electricity sector ........................................................................................................................................ 5 1-1-Large scale power stations (THermal) ................................................................................................ 5 1-1-1-Investment opportunities and potentials ................................................................................... 5 1-1-1-1-List of governmental power stations that can be ceded to the private sector ................... 5 1-1-1-2-Investment potentials for construction of new power stations .......................................... 5 1-1-2-Existing incentives and advantages ............................................................................................. 6 1-1-3- General information on the investment plan ............................................................................ 6 1-1-4- General information on the licenses and permits...................................................................... 7 1-1-5- Responsible departments and modes of communication with them ........................................ 7 1-2-Renewable energy power stations (solar, wind, biomass, geothermal) ............................................ 8 1-2-1- Investment opportunities and potentials .................................................................................. 8 1-2-1-1-New investment opportunities and potentials .................................................................... 8 1-2-1-2- Existing investment opportunities and potentials ............................................................ 11 1-2-2- Existing incentives and advantages .......................................................................................... 12 1-2-3-General Information on the investment plan ........................................................................... 14 1-2-4- General information on the licenses and permits.................................................................... 14 1-2-5- Responsible departments and modes of communication with them ...................................... 15 1-3-Hydroelectric power stations ........................................................................................................... 16 1-3-1-Investment opportunities and opportunities ............................................................................ 16 1-3-2- Existing incentives and advantages .......................................................................................... 19 1-3-3- General information on the investment plan .......................................................................... 21 1-3-4- General information on the licenses and permits.................................................................... 22 1-3-5-Responsible departments and modes of communication with them ....................................... 22 1-4- Small scale generators ..................................................................................................................... 23 1-4-1- Investment opportunities and potentials ................................................................................ 23 1-4-1-1-Investment potentials for construction of new power stations ........................................ 23 1-4-2- Existing incentives and advantages .......................................................................................... 24 1-4-3- General information on the investment project ...................................................................... 25 1-4-4- General information on the licenses and permits.................................................................... 25 2 1-4-5- Responsible departments and modes of communication with them ...................................... 26 Page Opportunities, Incentives and Economic Feasibility Studies; Water and Power Investment Plans 2-Water sector ............................................................................................................................................ 27 2-1-Small scale hydroelectric power stations ......................................................................................... 27 2-1-1- Investment opportunities and potentials ................................................................................ 27 2-1-2- Existing incentives and advantages .......................................................................................... 29 2-1-3- General information on the investment plan .......................................................................... 30 2-1-4- General information on the licenses and permits.................................................................... 30 2-1-5- Responsible departments and modes of communication with them ...................................... 31 2-2-Dams, irrigation and drainage networks, water and wastewater transmission lines,... .................. 32 2-2-1-Investment opportunities and potentials ................................................................................. 32 2-2-2-Existing incentives and advantages ........................................................................................... 34 2-2-3-General information on the investment plan ........................................................................... 35 2-2-4-General information on the licenses and permits .................................................................... 35 2-2-5- Responsible departments and modes of communication with them ...................................... 36 3-Water and wastewater sector ................................................................................................................. 37 3-1-Investment opportunities and potentials ......................................................................................... 37 3-1-1- Opportunities and potentials for investment in contract forms of BOO and BOT .................. 37 3-1-2- Investment opportunities and potentials in rural water supply complexes in contract form of BOT ...................................................................................................................................................... 44 3-1-3- Investment opportunities and potentials in contract form of buy-back ................................. 46 3-1-4- Investment opportunities and potentials in foreign financed projects and plans ................... 49 3-2- Incentives and advantages .............................................................................................................. 50 3-3-General information on tHe investment plan................................................................................... 51 3-4-General information on tHe licenses and permits ............................................................................ 52 3 Page Opportunities, Incentives and Economic Feasibility Studies; Water and Power Investment Plans Introduction To stimulate private sector investment in the infrastructural water and power plans and projects and to have this sector further engaged in the above- mentioned area we need to prepare relevant desirable ground. Within the same context restructure of the economic system and further participation of the private sector is of highest significance. Therefore the Department for Planning and Economic Affairs of the Ministry of Energy released the first and second editions of the report titled "Guide to investment in the water and power sector of the Islamic Republic of Iran" in 2013-2014. Also by releasing the first edition of the report titled "Opportunities, Incentives and Economic Feasibility Studies Water and Power Industry Investment Plans" in the preceding year some expectations of the investors were responded but due to the requirements of the non-stop improvement of business circumstances release of the second edition of the "Opportunities, Incentives and Economic Feasibility Studies Water and Power Industry Investment Plans" report was found to be quite necessary with the purpose of updating and editing its first edition. We are confident that your constructive and useful views and considerations will help us to update and complete the contents of the present report in the future in favor of further engagement of the private sector in the Ministry of Energy's plans and projects. 4 Page Opportunities, Incentives and Economic Feasibility Studies; Water and Power Investment Plans 1-Electricity sector 1-1-Large scale power stations (Thermal) 1-1-1-Investment opportunities and potentials 1-1-1-1-List of governmental power stations that can be ceded to the private sector Currently, eleven power stations with total electricity output capacity of around 4663 Megawatts have been prepared to be ceded to the private sector. Table (1-1): List of power stations to be ceded to the private sector Nominal Number Output capacity Type of the absorbed No. Name of units (Megawatt) Unit power (Megawatt)