Iran, Romania – partners in a USD 700 M energy deal

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Iran and Romania have signed an initial agreement to build a 1,000-megawatt power station in Mehran near the Iraqi border, IRNA news agency reported, after Iranian Foreign Minister Mohammad Javad Zarif visited Bucharest.

The project signed between Pichak Sanat Ilam company of Iran and the Romanian side calls for investment of up USD 700 million, 70 percent of which will be sourced by the Romanians and the rest by Iran. The name of the Romanian company has not been disclosed by the local media.

The plant is intended for exports of electricity to Iran’s western neighbor, Mohammad Azadi, a member of the economic delegation said. Iran is currently exporting some 1,500 megawatts of electricity to Iraq, with a further capacity being established to raise it to 2,000 megawatts.

The project will be launched in the next two months, and the power plant will become operational in three years.

Iran is also building a natural gas combined cycle power plant in Iraq’s Basra at a cost of USD 2.5 billion.

Since the fall of communism in Romania, it hasn’t been built any generating capacity of 1,000 MW (for comparison, a unit of the Cernavoda has 700 MW). The largest greenfield power plant is a gas unit, in combined cycle, with an output of 860 MW, built by Petrom at Brazi.

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