Iran and Russia inked an agreement last September to match power systems in Iran, Azerbaijan and Russia. Negotiations were held afterward between Iran and Azerbaijan on construction of a 260-km long 400 kV transmission line linking the two neighboring countries within six months.

Construction of the power line is planned to be completed by late March, which is the first step to connect power networks of Iran and Russia.

Iran is aiming to become the region's major energy hub, given its geographic location between the tropical area to its south and its northern neighbors in cold, sometimes polar climates, according to Iranian deputy energy minister.