Unit International, a Turkish power plant developer, has finalised a $4.2 billion accord with the Iranian energy ministry to build seven combined-cycle gas power plants in the Islamic Republic. Overall generating capacity amounts to 6,020 MW, underpinned by in what will be the biggest foreign investment in Iran since the lifting of sanctions.
Construction of the seven power plants is scheduled to start in the first quarter of 2017. Once completed, the entire new-build capacity is expected to cover 10% of Iran’s electricity demand.
Gas tolling accord, PPA in place
Unal Aysal, the owner of Unit International underlined that his company has been working in Iran since 1982 and outlined the latest energy deal: “Iran will supply natural gas to us for 20 years and we will sell the electricity for 6 years for an agreed price.
“This deal is a pioneer agreement regarding expansion of Iran's market to foreign capital,” said Aysal, who is also the former chairman of Istanbul’s football club Galatasaray.
Boosting CCGT efficiency
Thermal Power Plant Holding (TPPH) signed the deal on behalf of the Iran energy ministry. Mohsen Tarztalap, TPPH general director suggested the new power plants will be twice as efficient as Iran’s existing combined-cycle plants which have outdated technology. Tarztalap called the power plant agreement with Turkey an “exemplary deal for all other foreign investors.”
Unit International earlier completed the construction of five power plants in Iran, with a combined capacity of 3,210 MW.
The latest deal was helped by Memorandums of Understanding (MoU), signed between the governments of Turkey and Iran back in April in a bid to advance bilateral cooperation in several areas, including energy, plant maintenance services, industrial standardisation and higher education.