The project was launched in southern province of Hormozgan during a ceremony attended by the president and members of the board of directors of MAPNA Group.
The steam unit, part of the combined cycle power plant in Bandar Abbas, aims to not only increase the plant’s electricity generation capacity but also set a new standard for energy efficiency in Iran’s power industry.
The project, implemented in collaboration with MAPNA Group and supported by major industries, is being financed independently of government funds.
Scheduled for completion within 32 months, the project is a significant step toward enhancing energy efficiency and ensuring a stable power supply for the industrial complex.
The Al-Mahdi Combined Cycle Power Plant was inaugurated with its first gas unit coming stream in February 2024. Once completed, the plant will have a capacity of 526 MW.
Developed by MAPNA Group, the plant features advanced technologies like MAPCS control and MAPEX excitation systems, setting new benchmarks in efficiency. The first gas unit was completed in just 11 months, synchronizing to the national grid in November 2023.
Innovative Financing Model
Addressing the event, Mohammad Owliya, MAPNA Group President, highlighted the advantages of combined cycle power plants, noting that they use waste heat from electricity generation to produce steam, which drives additional turbines.
This process increases efficiency and reduces fuel consumption, he said, adding that with the addition of the steam unit, the plant’s total capacity will reach 546 MW without requiring additional gas, significantly lowering environmental emissions.
Owliya emphasized the project’s innovative financing model, which involves regional energy-intensive industries contributing to the costs in exchange for a share of the electricity generated. “This approach not only attracts private sector investment but also accelerates power plant development without relying on government funds.”
He added that this model could be replicated across Iran, addressing the country’s electricity shortage and fostering sustainable employment in the power and energy sectors.
Environmental Impact
Owliya also underscored the environmental benefits, noting that the project will save one million cubic meters of natural gas daily, equivalent to planting 30 million trees in terms of reducing carbon emissions.
He described this as a crucial step toward sustainable development and environmental protection, positioning combined cycle power plants as key players in reducing pollution and promoting cleaner energy production in Iran.
Owliya reiterated MAPNA’s commitment to reducing reliance on government budgets for power industry development. “The collaborative financing model not only enables the construction of new power plants but also encourages industries to play a more active role in meeting their energy needs,” he said.
Balanced Development
Mohammad Ashouri Taziani, the governor of Hormozgan Province, described the project as a significant step toward balanced development in the region during the groundbreaking ceremony.
Highlighting the €110 million investment by MAPNA Group, Taziani emphasized the environmental benefits of the project.
He noted that the steam unit, alongside the gas unit, would optimize fuel consumption and reduce emissions by increasing production efficiency, directly improving air quality and contributing to sustainable development in the province.
The governor also underscored the project’s role in job creation, stating that it would not only ensure a reliable power supply but also generate new employment opportunities for local residents, boosting the region’s economic prosperity.
Industry Leaders Highlight Project’s Impact
Hamid Rajabpour, CEO of Almahdi Aluminum Company, said that the steam unit would enhance the power plant’s efficiency, ensure stable energy supply, reduce production costs, and significantly lower environmental pollution.
He described the initiative as a step toward sustainable development and strengthening Iran’s industrial capabilities.
Mohsen Amiri, a board member of MAPNA Iranian Power Plant Management Group, highlighted MAPNA’s contributions to Iran’s power sector. He noted that the conglomerate has been responsible for constructing nearly 70% of the country’s thermal power capacity since its inception.
Amiri pointed out that insufficient power supply for industries leads to reduced production and negative social consequences.
He explained that MAPNA’s collaborative model for financing and constructing the steam unit at Al-Mahdi Power Plant addresses the energy needs of major industries, showcasing the group’s commitment to social responsibility.