Profitability of “Niroo Parse” in Two Consecutive Years

2017/08/12

Niroo Parse Power Plant Production and Development Company (private limited) was a profitable company for the second consecutive year since its inception. It was announced at the General Assembly of the company that Niroo Parse in the last fiscal year made a profit of 12.7 billion IRR. In the meantime, after checking the company’s budget for the next year at the General Assembly, making a profit of 70 billion IRR was put as a target.

Hundred per cent of the ownership of Niroo Parse Power Plant Production and Development Company belongs to the Kharazmi Investment Company (public joint stock). The company was established in the Persian year 1390 (2011-2012) as a private limited company for design, implementation, manufacture and installation of all parts, accessories, assembly, production and manufacture of facilities and equipment of power and combined heat and power (CHP) and other electric facilities, investment in the construction of power generation plants and electricity. Becoming the top company in all fields related to small-scale power plants in the country is among the goals of Niroo Parse Company for the coming years. Conclusion of a four-sided agreement for the provision of 500 megawatts of electricity through establishment of small-scale power plants in Mazandaran Province, starting the installation, commissioning and operation of Tonekabon 25 megawatt power plant, participation in the establishment of Chamestan 25 megawatt power plant and transfer of a 3.8 megawatt electric generator to Hadith Mehr Shiraz Company in the form of rent-to-own the rent of which would be provided through electricity sale, are among the most important achievements of the company.

Given that this year Tonekabon and Chamestan power plants would enter into the grid, the main profitability of Niroo Parse Power Plant Production and Development Company would be from electricity sale of the two power plants, so that the electricity sale capacity of Niroo Parse Power Plant Production and Development Company would increase eight folds monthly. Currently, Niroo Parse sells nearly 10 million kw/h of electricity which would increase to 35 million kw/h with the operation of Tonekabon and Chamestan power plants. In that case, the profit of at least 70 billion IRR is predictable.

In the last fiscal year, Niroo Parse increased its capital from 430 billion IRR to 760 billion IRR which led to the implementation of Tonekabon power plant project as well as outstanding progress in Mubarakeh Steel Complex power plant. Thus, the company decides as a next step, to increase its capital from 760 billion IRR to 1180 billion IRR and expand the scope of its activities. Dr. Hojatollah Saydi, Managing Director of Kharazmi Investment Company (public joint stock) at Niroo Parse General Assembly promised to supply part of the financing. Of course, to supply financing of future projects, Niroo Parse Company intends to receive banking facilities and is currently negotiating with some banks.

 

Looking for a European Partner

Although Niroo Parse Power Plant Production and Development Company is considered a trade partner of Hyundai Heavy Industries Company (HHI) and is committed to that company, but with regard to the facilities provided after the Joint Comprehensive Plan of Action (JCPOA) and the possibility for cooperation with the European brands especially the high-end generators (because Hyundai generators are low RPM and high capacity), it would welcome cooperation with a European brand.

Currently, Hyundai Company, as the manufacturer of self-running generators, is offering technical services to Niroo Parse Company but the installation and operation of the purchased devices is done by Niroo Parse.

 

Field Activities of Niroo Parse

Niroo Parse Power Plant Production and Development Company (private limited) won a tender for the 29-megawatt Saba Steel Power Plant (a subsidiary of Isfahan Mubarakeh Steel Complex) in 1392 (2013-2014) but it was communicated a year later (1393). Construction of the power plant has so far had a physical progress of 75%. The 29-megawatt Saba Steel Power Plant includes seven South Korea-made generators each generating 2.4 megawatt, which are installed and operating in the site of the power plant. It is estimated that the power plant would be completed and delivered to the client by the end of autumn this year.

The 25-megawatt power plant of Tonekabon as one of the most important projects of Niroo Parse is composed of three electricity generators, each 8.3 megawatt and made by Hyundai. At present construction operation of the power plant has been finished and the generators are being installed. With regard to the electrical and mechanical operations, it is predicted that the 25 megawatt power plant of Tonekabon will become operational by the end of fall this year.

Tarasht Power Plant (Tehran) which is considered the showcase of Niroo Parse activities, is the first engine-generator gas power plant in the world which is made by Hyundai. The power plant has been operational since 1394 (2015-2016) and so far has had no stoppage.

The company plans to finance its 25 megawatt Third of Khordad power plant in Mazandaran Province and put two 3.8 megawatt generators into operation for the two separate investors in the coming year.

One of the main objectives of Niroo Parse Company is to turn into “Hyundai Service Center” in Iran. Of course, such an attempt requires availability of enough equipment and financial resources.

Given the attractiveness of the subject matter under the current economic condition of the country, the company would make efforts to publish the report on the progress of its existing and future projects regularly through the official website of Kharazmi Investment Company and “Kharazm” monthly magazine.

 

Synchronous Scattered Electricity and Thermal Generation Power Plants

For the first time electricity was generated in the United States by using a local power generator. In modern systems efforts are made, like what happened for the first time in the United States, to generate electricity in the place of use. In the systems which became common in the past few decades, in places with a distance of 200 km from the place of use, electricity was generated which had its own difficulties. But, by using electricity generating power plants the cost of transfer of electricity and loss of the power network will be reduced and on the other hand capability of the network will be increased. Therefore, this category of power plants has become the center of attention and in European countries such as Denmark and the Netherlands they play a determining role in generation of electricity.

The low electrical efficiency of thermal power plants and the high cost of the maintenance of these systems with regard to depreciation of most equipment on the one hand and high costs of energy transfer and the existing loss in the network of an expanded country like Iran on the other hand, beside the increasing need to electric energy, has resulted in paying further attention to the utilization of power plants for the scattered generation by the government so that it has allocated facilities to the establishment of gas fueled power generation plants up to the ceiling of 25 megawatt. Therefore, investment in such power plants, with regard to the purchase rate of 5-year guaranteed electricity by TAVANIR (Iran Power Generation and Transmission Company), their early yield, high electrical efficiency, and most importantly, synchronous use of the power produced in the process as heat, steam or coldness, has economic justification and is attractive for the investors.