Iran project signs 270MW power deal

IRAN: Meci Group International, a Swiss non-profit advisory and management consultancy, has signed a power purchase agreement (PPA) with the Renewable Energy Organisation of Iran (Suna) to build a 270MW wind project in the northern mountains, the company announced.

The 71.7MW Manjeel wind project in Iran (pic: Ali Majdfar)

The project will be financed through a bond issue and in association with equity partners, with an 80-20% debt-equity ratio, Meci said.

Meci added it recently started field-testing a number of turbines from different suppliers. "We may have a mix of two or three vendors since we are looking for rapid installation and diversity in supply to reduce operational risk," explained chairman Jeremiah Josey.

All being well, he expects construction to start early next year, for commissioning by December.

The group has been developing sites in Iran since the lifting of sanctions earlier this year. "It has been a challenging path," Josey said.

Overall, it aims to install around 500MW of wind capacity in Iran and expects to sign further deals in the coming months.

In September, the Iranian government said it would introduce competitive tenders for large-scale wind projects.

Up to 1GW could be offered to private-sector investors, likely in several stages. The tenders will run alongside the current system of feed-in-tariffs, which will be reserved for projects under 100MW.