A delegation of senior capital market leaders visited the Parand Combined Cycle Power Plant, developed by MAPNA Group, on Sunday, December 1, 2024.
The event featured representatives from the Institutional Investors Association of Iran, leading investment and financing companies, capital market participants, and journalists specializing in industry and energy sectors.
The delegation was accompanied by MAPNA’s Vice Chairman and Head of Power Division, Economic and Financial Deputy, Financial Services Division CEO, and other senior officials.
Strategic significance of Parand Power Plant
Ehsan Aghaei Malayari, MAPNA Group’s Director of Communications and Market Department, opened the session by introducing the Parand Combined Cycle Power Plant and emphasizing its strategic value.
“This 1,580 MW plant, situated near Tehran, is one of MAPNA’s most important assets,” said Aghaei.
“Its proximity to the capital and ability to supply electricity to Tehran and surrounding cities make it crucial, not only for energy infrastructure but also for its appeal to the capital market.”
MAPNA’s readiness to add 6,000 MW
During the visit, Khalil Behbahani, CEO of MAPNA Group’s Power Division, announced that the conglomerate has proposed a plan to the Ministry of Energy to add 6,000 MW of power capacity by the summer peak of 2025.
The approach involves two main strategies, explained Behbahani: “completing and operationalizing thermal and renewable units, and upgrading the efficiency of existing plants through software and hardware enhancements, as well as implementing smart metering systems.”
Behbahani highlighted that financing will be a key enabler of this ambitious goal. “We are leveraging accumulated claims and existing capacities within the system to secure funding. Additionally, MAPNA plans to propose a dual-package project involving the conversion of simple-cycle units, both private and MAPNA-owned, to combined-cycle configurations, adding a total of 4,000 MW.”
He emphasized the efficiency gains of such conversions, stating, “This approach not only increases electricity production without additional fuel consumption but also enhances plant efficiency beyond 50%.”
IPO plans for Parand Power Plant
Ahmadreza Farasat, Economic and Financial Deputy of MAPNA Group, revealed plans for two initial public offerings (IPOs): one for the Parand Power Plant and another for the MAPNA Iranian Power Plant Management Group.
“Parand Power Plant, originally a project-based entity, has been transformed into a joint-stock company, accelerating the timeline for its public offering,” Farasat noted.
Operational excellence at Parand Power Plant
Meysam Nasr, CEO of MAPNA Parand Power Generation Company, shared key operational metrics, stating, “Although the plant accounts for 1.6% of the national grid’s capacity, it contributes 2.5% of the country’s electricity generation.”
Nasr attributed this performance to high operational readiness, MAPNA’s advanced equipment, and the skilled technical team managing the plant.
He provided details on its infrastructure, which includes three MAP2B turbines and one MAP2C turbine—the latter representing MAPNA’s latest upgrades.
The plant’s gas section operates with two 180 MW turbines, while its steam section includes three 159 MW units, constructed under buyback contracts.
Nasr highlighted Parand’s unique achievements, including being the first power plant privatized through debt settlement, the first registered in the energy exchange market, and the first to utilize upgraded MAP2B and MAP2C turbines.
Nasr also discussed future plans, such as the listing of Parand Power Plant on the Iran Fara Bourse and the commissioning of small-scale power generators in Pardis and Behshahr.
Arman Parand Project Fund: A model for financing
Ali Eslami Bidgoli, Chairman of the Board of Arman Ati Capital Market Services, reflected on the establishment of Iran’s first project fund, Arman Parand MAPNA.
“In 2015, MAPNA launched the Arman Parand Fund, raising €25 million to finance the Parand steam unit,” said Bidgoli.
“This tool has proven essential for financing major infrastructure projects, particularly in addressing semi-finished projects across the country,” he said.
He emphasized that project funds, with their reduced risks and increased investment opportunities, could play a pivotal role in advancing national infrastructure.
Streamlining project fund establishment
Mohammadreza Ma’adi Khah, a board member of Arman Parand MAPNA Fund, outlined the challenges and opportunities in setting up project investment funds.
“Key hurdles include regulatory complexities, asset transfer procedures, and tax-related challenges,” Ma’adi Khah explained.
“By separating fund establishment processes from subscription stages, we can accelerate the execution of large infrastructure projects,” he suggested.
He urged the establishment of specialized financial institutions to facilitate fund development and enhance investor confidence.
Established on June 14, 2016, the MAPNA Iranian Power Plant Management Group encompasses a consortium of seven companies, including MAPNA Qeshm Water and Electricity Generation Company, MAPNA Renewable Energies Generation Company, MAPNA Tous Power Generation Company, MAPNA Sanandaj Power Generation Company, MAPNA Asaluyeh Power Generation Company, MAPNA West Karun Power Generation Company, and MAPNA Genaveh Power Generation Company, alongside MAPNA Arman Parand Investment Fund.
Located 30 kilometers southwest of Tehran, Parand Power Plant covers 100 hectares and serves as a vital hub for Iran’s energy sector and industrial development.