Russia to build four nuclear power plants in Iran for USD 25 billion

Iran has signed a contract with Russian state-owned nuclear company Rosatom to build four nuclear power plants in Iran for USD 25 billion (CZK 521.5 billion). The Iranian news agency IRNA reported this today.

Rosatom previously said it had signed a preliminary agreement on Wednesday to build small nuclear power plants. It did not specify their exact number, however. Rosatom described the agreement as a strategic project.

IRNA said the new plants will feature modern third-generation nuclear reactors. They will occupy an area of 500 hectares in the southeastern province of Hormozgan and are expected to generate up to 5000 megawatts of electricity. The preliminary contract was signed in Moscow, the Reuters news agency reported.

Iran suffers from electricity shortages during periods of high demand. It currently has only one operating nuclear power plant, at Bushehr. It was also built by Russia. Its capacity is around one gigawatt (GW).

Iranian Atomic Energy Organization chief Mohammad Eslami said this week that the country plans to build eight nuclear power plants with Russian assistance. Iran aims to increase its nuclear power capacity to 20 GW by 2040.

Russia has close ties with Iran and condemned the US and Israeli attacks on Iranian nuclear facilities in June. Israel said at the time, without providing evidence, that Iran was close to obtaining nuclear weapons. Tehran, however, says it has no such intention.