MECI Group signs 270 MW wind project in Iran

MECI Group International has announced it has signed an agreement with Iran’s government to build a wind farm.

The project, located Northern Iran, will have 270 MW installed capacity and the total investment of the farm is expected to reach €750 million (US$839 million).

According to Energy Minister Hamid Chitchian, generating more green power would allow the country to export more of its fossil fuels abroad.

MECI signed a 5-year power purchase agreement (PPA) with the Iran’s energy ministry with a fixed feed-in tariff.

The company will finance the project with a bond issue and equity partners. The expected debt-to-equity split is 80/20, according to sources.

MECI is in progress of signing agreements for another 500 MW of renewable-energy plants once the wind farm progresses. Recently, it agreed to build a 100 MW combined heat and power plant that will burn natural gas.

MECI has a target to install 1 gigawatt of clean power in Iran, which will be a mix of solar and wind. 

MECI Chairman Jeremiah Josey said:

“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.”