Senior Iranian energy officials said a new power line from Iran to Armenia and Georgia is due to send Iran's electricity through to Europe.

According to Fars news agency, the completion of a 230 KW electric cable from Iran to Armenia will provide the possibility of connecting Iran's and Georgia's electricity network, whilst increasing the overall capacity to trade energy with Iran's neighbors to 400 KW, Iran's Deputy Energy Minister Mohammad Behzad said.

Currently Georgia's electricity is routed through Azerbaijan.

Armenia's Energy Minister welcomed the project last week and said it would triple the electricity exchanged between Armenia and Georgia.

Iran and Azerbaijan are currently discussing a project to connect Iran's electricity network to Russia while talks are also under way with Turkey to connect Iran's grid to Lebanon in addition to plans to connect its network to Persian Gulf countries. If these talks are successful, Iran will be a strong electricity hub in the region. Turkmenistan, Turkey, Iraq, Afghanistan and Pakistan will all buy electricity from Iran.

Iran's capacity to export electricity has increased 24 per cent since the implementation of its targeted subsidies program and is expected to earn $1 billion by the end of this year (Iran's solar year ends in March).