Turkish electricity producer Zorlu Enerji may build gas-fired power plants in Iran as Turkey�s eastern neighbor seeks to attract investors after decades of economic sanctions.

The company is in talks with Iranian authorities for the project and a concrete plan may be announced this year, said Omer Yungul, chief executive officer of Zorlu Holding, which owns the Istanbul-based company formally known as Zorlu Enerji Elektrik Uretim AS.

Zorlu Enerji, which produces electricity from wind, hydro, gas-fired and geothermal power plants totaling 966 megawatts in Turkey, Pakistan and Israel, plans to invest �a sizable amount� in Iran, Yungul said�in an interview in Istanbul. The total capacity of the power plants may be similar to plans by Unit International, owned by Turkish investor Unal Aysal, to build power plants costing $4.2 billion in Iran, he said.

Zorlu Holding is also considering a minority partner to buy a stake in�Zorlu Enerji, Yungul said. �We are holding talks with interested parties for a minority partner, but no firm decision has been made yet.�

Zorlu Enerji shares rose as much as 2.5 percent to 1.65 liras�in Istanbul before ending the day at 1.64 liras.

By Bloomberg