Turkish companies to build power plants in Iran for $3 billion

Turkish companies to build power plants in Iran for $3 billion

Merve Erdil - TEHRAN
Turkish companies to build power plants in Iran for $3 billion Iran will soon sign a $3 billion deal with Turkish companies to build power plants with an installed power of 5,000 MW, Iran’s deputy energy minister, Husheng Felahetiyan, has said. 

Most international sanctions on Tehran were lifted in January in exchange for curbs on Iran’s nuclear program under a deal reached with world powers in 2015.

“In the coming days we will sign an investment agreement with Turkish private companies for the construction of power plants with the capacity of 5,000 MW in Iran. The size of this deal is $3 billion,” he said. 

“We have other agreements with Turks but they have not been finalized and talks are still continuing,” he added on the sidelines of an energy conference in Tehran.  

He also invited Turkish companies to invest in gas-fired power and wind power in Iran. 

Felahetiyan also noted that power trade between Iran and Turkey would increase, adding that Iran now sells around 350 MW of electricity to Turkey. 

In line with a deal which was recently signed between Iranian authorities and Turkish Energy Minister Berat Albayrak, this amount was planned to be increased to 1,200 MW in the next 1.5 years and 3,000 MW in the upcoming period. 

Felahetiyan said that Iran exported some 10 billion kWh or power to its neighboring countries. 

Cut in gas prices

Upon a question about whether there would be any cut in Iran gas which is imported by Turkey, he said the existing deals were still effective. 

“On the basis of these deals, talks can be made for the upcoming period,” he added at the conference, to which many foreign energy players attended and showed huge interest. 

At the 11th International Energy Conference in Tehran, a delegation from the World Energy Council Turkish National Committee (DEK-TMK) attended from Turkey. 

DEL-TMK President Murat Mercan invited Iranian sector representatives to attend the World Energy Congress, which will be held in Istanbul in October. 

He noted that a total of 220 sector players from 75 countries have already informed about their attendance at the triennial event, adding that 37 of them were ministers.