By John Lee.
Switzerland’s MECI Group International has signed an agreement with Iran’s government to build a 750 million-euro ($839 million) wind farm.
MECI Chairman Jeremiah Josey told Bloomberg:
“Iran is at a very interesting point in history. There is so much growth to be had. They can get through at least 20 years of technological catch-up in five years.”
He added that he expects the 5-year, fixed feed-in tariff, power purchase agreement with the Iran’s energy ministry to be extended “once we prove ourselves.”
The project, in the mountainous region in northern Iran, will have 270 megawatts installed capacity, and will be financed with a bond issue and equity partners; the expected debt-to-equity split is 80/20.
The company has also agreed to build a 100-megawatt combined heat and power plant, and anticipates signing agreements for another 500 megawatts of renewable-energy plants once the wind farm progresses. MECI has a target to install 1 gigawatt of clean power in Iran, which will be a mix of solar and wind.