Post-sanction Iran has opened up for investment and this includes more interest in the area of renewable power generation.
Switzerland’s MECI Group has signed an $839m deal to develop a wind farm in the country’s mountainous north.
The project will have 270 MW in installed capacity, according to a statement from the Swiss holding company. Turbine testing is already happening onsite, according to MECI Chairman Jeremiah Josey.
“Iran is at a very interesting point in history,” Josey told Bloomberg. “There is so much growth to be had. They can get through at least 20 years of technological catch-up in five years.”
Generating more green power at home would allow the country to export more of its fossil fuels abroad, Energy Minister Hamid Chitchian said in a July interview.
MECI signed a 5-year power purchase agreement with the Iran’s energy ministry with a fixed feed-in tariff. Josey said he expects the contract will be extended “once we prove ourselves.”
MECI, which also agreed to build a 100 MW gas-fired combined heat and power plant, will finance the project with a bond issue and equity partners.
Josey anticipates signing agreements for another 500 MW of renewable-energy plants once the wind farm progresses. The company has a target to install 1 gigawatt of clean power in Iran, which will be a mix of solar and wind.
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