The government of Iran has shared details through the draft of the Memorandum of Understanding (MoU) for exporting 5,000 megawatts (MW) of electricity to Pakistan.
The MoU was drafted to strengthen bilateral ties between the two countries after the official visit by Minister for Energy Khurram Dastgir Khan to Tehran in late June 2022 for a meeting to expand cooperation in the field of energy and electricity.
According to the MoU, Pakistan expressed its intent to secure a long-term power purchase contract with a capacity of 5,000 MW for a five-to-twenty-year period, and Iran welcomed it, indicating its willingness to build the necessary facilities, including a power plant, transmission lines, and substations, on its territory.
The MoU further noted that Iran voiced its readiness to supply gas for the said power plant, and both sides accepted that the construction of the power plant, transmission lines, and substations be implemented by Iranian companies.
As per the MoU, Pakistan vowed to set up a system wherein monthly payments for electricity purchases would be automatically made as well as to expedite the payment of any receivables related to Iran’s electricity exports to Pakistan.
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