Turkish firm signs $4bn Iran power deal

05 June 2016

Work on plants is due to start in 2017

Turkish energy firm Unit International has signed an estimated $4.2bn contract with Iran’s energy ministry to build gas-fired power plants.

According to a statement issued by Unit International, the firm will build seven power plants as part of the deal, with a total installed capacity of 6,020MW. The agreement was signed on 1 June.

Construction work on the facilities is due to start in the first quarter of 2017.

The schemes are part of Tehran’s plans to meet growing demand for energy, which is expected to increase now that international nuclear-related sanctions have been lifted.

The country’s atomic energy agency recently announced that the Islamic Republic was planning to build nine nuclear power plants by 2025.

Behrouz Kamalvandi, spokesman for the Atomic Energy Organisation of Iran (AEOI), revealed on 9 April to local media that the nuclear power facilities would enable the country to meet its target for atomic energy to contribute to 10 per cent of total power production.

In 2014, Russia agreed to build up to eight nuclear reactors for Iran to pursue its nuclear power programme. The agreement will involve Russian companies building two nuclear reactors, with scope for an additional six reactors if required.

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