"Within the next 20 years, Iran has to produce 6000 megawatts of electricity from nuclear power," Iranian Foreign Minister Kamal Kharrazi said.

Iran's domestic electricity demand is growing at 6.5% a year and Tehran needs to add 2500 megawatts annually to its generating capacity, Iranian officials said.

However, Washington remains sceptical and has argued that Iran, which is the second largest producer in OPEC, has no need for nuclear power. In response, Iran said it is keen to avoid diverting too much of its oil exports into the highly subsidised domestic market.