Iran signs power plant deals worth over $10bn

30 January 2017

Iran has signed agreements valued at around €10 billion ($10.7 billion) companies for the construction of new power plants with German, Russian, Chinese, South Korean and Turkish companies, a top government official said.

The preliminary agreement with Turkey’s Unit International is one of the biggest of its kind after the international sanction were lifted, Alireza Daemi, Deputy Energy Minister for Planning and Economic Affairs was quoted as saying in an Iran Daily report, which cited Mehr News Agency.

Unit International signed a $4.2-billion preliminary deal with Energy Ministry in June to build gas power plants in seven regions in Iran. The power stations would have a combined installed capacity of 6,020 MW, the report said.

"The deal with Unit International is an agreement in principle … it is expected to be approved as a full and final contract by March," the deputy minister said.

"The ministry will ensure that at least 50 percent of operations in all new power plant contracts, including with Unit International, will be carried out by domestic companies," he added.

Germany’s Siemens is also in agreement to supply turbines to Iranian power plants. Siemens signed a deal last year to deliver 20 F-Class turbines and also share turbine manufacturing knowhow.

Russia's major energy company, Technopromexport, is due to start construction of a 1,400 MW thermal power plant in the southern Hormuzgan Province next month, the report said.