The natural gas was the major fuel used to generate electricity in Iran in 2009, accounting for an estimated 56.8% of primary energy demand (PED), followed by oil at 40.8% and hydro power at 1.4%.
[12] Iran's power grid has been connected to seven neighboring countries Afghanistan, Pakistan, Iraq, Turkey, Armenia, Azerbaijan and Turkmenistan[citation needed] and annually, exports 5.5 TWh of electricity.
[citation needed] Iran has achieved the technical expertise to set up hydroelectric, gas and combined cycle power plants.
[17] The Industrial Development and Renovation Organization of Iran (IDRO) is currently building the country's first 4-megawatt (MW) Combined Heat and Power (CHP) turbo generator in cooperation with the private sector.
Iran is not only self-sufficient in power plant construction but has also concluded a number of contracts on implementing projects in neighboring states.
[citation needed] One of Iran's most important international projects will see the construction of a $200-million hydroelectric dam in Nicaragua starting 2011.
Kenya, Sri Lanka, Bolivia and Mali are the potential target markets being considered for exporting the country's technical and engineering services.
[31] Jahrom, Khalij-e Fars (Persian Gulf) and Sahand power plants will be ceded to the private sector in 2009.
[32][33] All domestic power plants will be privatized gradually, except those the government feels it should run to ensure security of the national electricity grid.
Power plants of Damavand, Mashhad, Shirvan, Kerman, Khalij-e Fars, Abadan, Bisotoon, Sanandaj, Manjil and Binalood, which have been turned into public limited firms, are ready for privatization.
[40] Experts believe that following the launch of the subsidies reform plan, the electricity industry will undergo significant changes and will become more appealing to private investors.
[citation needed] The average price of each kilowatt of electricity is 450 rials (around 5 cents) during the first phase of the Subsidy Reform Law.
[42] Jordan, India, Oman, Qatar, Russia, Syria, and the UAE are the new countries that have expressed interest in buying electricity from Iran.
Similarly there was 418 MW of capacity belonging to diesel generator based plants supplying hard to reach areas.