Iranian and Indian energy ministers signed an accord in Tehran over the weekend, Iran's Mehr news agency reported, without giving further details.
"New Delhi has announced its readiness to import 5-6 gigawatts of electricity from Iran," deputy energy minister Mohammad Behzad said before the signing ceremony. The electricity exports will be transmitted over land and not through submarine cables, he said.
Iran aims to increase its electricity generation capacity by 25 GW to reach 73 GW by 2015 - the end of Iran's fifth five-year economic development plan. Behzad said proceeds from Iran's electricity exports would amount to $1 billion by the end of the Iranian year calendar year on March 19, 2012.
To balance demand swings, Iran currently trades electricity with Turkey, Armenia, Turkmenistan, Azerbaijan, Pakistan, Afghanistan and Iraq.