Financial Tribune � A new gas unit in Tarasht Thermal Power Plant west of Tehran came on line Monday, managing director of Iran's Thermal Power Plants Holding Company said.

�The unit, which cost $11 million, adds 25 megawatts to the plant capacity,� the Energy Ministry news portal Paven quoted Mohsen Tarztalab as saying.

Prior to the new unit, the plant had four gas units with a total capacity of 40 MW. Nominal capacity now is 65 MW.

The intention is to help increase stability of the power network in the region, as electricity consumption rises in the hot summers.

Consumers have cranked up their air conditioners amid sizzling temperatures that have seen the mercury near 50 degrees Celsius in some southern regions and desert areas.

Tarasht Power Plant is 60 years old. However, with the help of knowledge-based companies and the private sector, the older units have been upgraded and the plant is operating at full capacity.

�A total of 80 thermal power plants with production capacity of 65,841 MW are operational across Iran,� the TPPHC boss added.

Within two years 25 more power stations will come on line and add 10,418 MW to the electricity generation capacity.

Private companies will contribute $1.2 billion to the project and the government�s share will be $505 million, Tarztalab said.

More than 80% of electricity output comes from thermal plants that run on fossil fuels.