Mines and Metals Development Investment Company is one of the big capital market companies that has taken effective steps to develop the infrastructure of the industry. For several years, this group has made a smart move to meet part of the needs of its investment companies, in relation to the establishment of the dynamic production and development company of Nagin Sabz Middle East Energy, and investment in the electricity industry, through the acquisition, development and construction of power plants in various locations. Different countries took action.
In the following, you will read the interview with the CEO of Negin Sabz Middle East Dynamic Company:
The CEO of the Middle Eastern Green Nagin Energy Dynamic Production and Development Company said: One of the projects that we are going to start at the beginning of 1402 is the combined cycle steam project. Gas units have a nominal efficiency of 34% and a real 32.5%, and a significant part of the energy enters the environment through exhaust smoke, which has both temperature and pollution. We have four gas units and we can build two steam units in the continuation of this project to increase the efficiency to 50%. The investment required for the construction of two steam units is 260 million Euros, which we hope to implement through EPCF or foreign currency assets of the holding and mines. There is a clear horizon in the implementation of this project, because both the recycling of wasted energy and the fact that it is agreed upon by the Ministries of Security and Power to supply 10,000 megawatts of power plants, and the implementation of this project can fulfill a part of this demand.
Mohammad Zaman Javalan added: The long-term prospects of the energy field in Iran are very bright for several reasons, and this field has a better horizon than the majority of industries that face many threats. The world is moving towards wind and solar energy (renewable) and the use of electric cars and electric energy is also increasing. The consumption of fossil fuels is decreasing drastically, and today’s people and environmentalists want a low-carbon and clean economy. Also, the debates related to water and water tensions and the increase in global temperature and greenhouse gases have accelerated the transition from oil geopolitics to electricity, and it is electric energy that will be the driving force of the world. Many energy-intensive industries will definitely be under severe threat in the future due to high energy consumption, high pollution and high water consumption and low productivity. These industries in a free economy will have a profit margin or ROE of about five to ten percent, but the power plant industry will have a profit margin and ROE of more than 15 percent. For this reason, companies active in the power plant industry will have a brighter future than mining industries. At the same time, the need for electrical energy is increasing and its demand is increasing in the long term.
He said: In the past and recent summers, we witnessed power outages in various industries such as steel, cement, and aluminum, and the non-profit costs of these industries increased sharply. This situation has caused the Ministry of Security to follow the plan to build a 10,000 MW power plant in the country. This situation shows that investment in the electricity industry is very important. At the same time, the mandated and low prices (subsidies of energy carriers) determined by the government in the electricity industry and the demands that the power plants have from the Ministry of Energy, which are paid with a long delay and with a low flow, have caused investment in this industry. Not attractive. And the power plants are currently a big creditor of the Ministry of Energy, and this situation of payment of claims in the current situation is not responsible for the basic repairs of the power plants. Although the profit margin of the power plant industry and its long-term horizon are very clear, but in our country, due to the fact that energy and fuel are cheap and their prices are determined by order, power plants are under pressure, and this situation makes profitability and return on investment in this industry unattractive. . It has made an appearance and has made capital run away from the electricity industry. But we would like to announce that in the coming years, due to the increase in the price of energy carriers and the environmental issue and the water crisis, the attractiveness of investing in the field of energy will increase. In the next few years, our country has no choice but to join the World Trade Organization and free economy and remove energy subsidies, and in such a situation, industries such as steel and… will have problems due to low productivity in the free market, but productivity in the electricity industry It is acceptable
and comparable to countries with a free economy, and this industry does not suffer and grows even if faced with a free economy. The CEO of Negin Sabz Middle East Dynamic Energy Production and Development Company noted: According to the data we have, the National Development Fund is obliged to support the construction of about 1,000 megawatts of power plants in the country annually with a 70% contribution. It will be very useful if we are among the groups that participate in the use of this 1000 megawatts.
It seems that due to the changes that have occurred in the macro-management levels, sometimes the definition and position of the subsidiary companies in the value chain and strategy of the upstream companies changes or is not clear. Our demand from Moaden Holding is that the position of Poya Energy Company in the value chain of this holding is determined realistically, and the costs of non-profit industries due to power outages are calculated, and the required electricity and electrical projects of the industries under Poya Energy Holding and Moaden are managed and aggregated. and be executed. . Energy-oriented projects should be defined in the holding and mining value chain. Unfortunately, sometimes the evaluation of a power plant project is currently evaluated based on IRR or return on investment, not based on the unprofitability of industries due to power outages. Regarding the costs of non-profitability resulting from blackouts or power cuts or VOLL (value of lost load), I predict the costs of non-profitability of Foulad Mobarakeh due to imposed blackouts will reach 300 million euros per year in 1401. This issue, along with the IRR of the power plant and along with the long-term horizon of 5 years, determines the necessity of investment in the field of energy, and it is better for each investment holding to invest a significant part in the field of energy (especially renewable energy) in its portfolio.
We hope that the companies of the group will pay attention to the issue of electricity supply, participation in power plant construction projects or bilateral electricity supply contracts with the help of holding and mines, and we will be able to find an optimal point in the bilateral electricity sales contracts in this group. Due to not paying attention to the issue of bilateral contracts based on the interests of the group (not the interests of just one company), now we have to look for companies that buy electricity from us at a better price to sell electricity.
