Turkey Eyes Iranian Power Plant Projects

Turkey Eyes Iranian Power Plant ProjectsTurkey Eyes Iranian Power Plant Projects

Turkish electricity producer Zorlu Enerji may build gas-fired power plants in Iran, as Turkey’s eastern neighbor seeks to attract investors after decades of economic sanctions.

"The company is in talks with Iranian authorities for the project and a concrete plan may be announced this year," said Omer Yungul, chief executive officer of Zorlu Holding, which owns the Istanbul-based company formally known as Zorlu Enerji Elektrik Uretim AS, Bloomberg reported.

In an interview in Istanbul, Yungul said Zorlu Enerji, which produces electricity from wind, hydro, gas-fired and geothermal power plants totaling 966 megawatts in Turkey, Pakistan and Israel, plans to invest “a sizable amount” in Iran.

"The total capacity of the power plants may be similar to plans by Unit International, owned by Turkish investor Unal Aysal, to build power plants costing $4.2 billion in Iran," he said.

"Zorlu Holding is also considering a minority partner to buy a stake in Zorlu Enerji. We are holding talks with interested parties for a minority partner, but no firm decision has been made yet.”

Zorlu Enerji shares rose as much as 2.5% to $0.56 in Istanbul before ending the day at $0.55. According to Energy Minister Hamid Chitchian, a multibillion dollar deal was signed two months ago with Turkish energy company Unit International for building power plants in Iran. On the details of the agreement with the Turkish company, the minister said following lengthy negotiations with several foreign companies, Iran’s power industry sealed its first investment contract after the removal of international sanctions with the Turkish investor. As per the deal, Unit International is due to build combined-cycle power plants in six regions, which would generate 5,000 megawatts of electricity.

“The power plants will have a considerable efficiency rate of over 58%,” Chitchian said.

The two countries reached the $4.2 billion accord on June 1 in Tehran.