Published on November 18th, 2015 | by Smiti20
German Company Plans 1.25 GW Solar Power Capacity In Iran
November 18th, 2015 by Smiti
Iran continues to attract global interest in its largely under-developed renewable energy sector.
According to the Iranian news agency, Mehr, the Iran Energy Ministry has recently signed a deal with a German company to build 1,250 MW of solar power plants in the Tehran province.
While not naming the German company, the news agency stated that the company will develop a number of solar power projects across several provinces in Iran.
Under the deal, 500 MW of solar projects will be built in Tehran province — including 150 MW in Kahrizak, 200 MW in Varamin, and 150 MW in Malard. Additionally, 750 MW of projects will be constructed in the central Isfahan and north-western Tabriz regions. The construction of the first project is expected to commence in early 2016 with expected completion by May 2016.
The German company will be responsible for fully financing the projects in exchange for long-term power purchase agreements (PPAs) and 20 years land lease at low rates.
“The envisaged plan is to increase power generation capacity during the post-sanction era by various means including foreign direct investment, construction of new solar, wind and incinerator plants as well as building small-scale plants with distributed generation,” managing director of the Great Tehran Electrical Distribution company stated.
This deal is a part of Iranian’s government goal to install 5 GW of renewable capacity by 2020. The implementation of 500 MW wind energy capacity and 100 MW biomass projects has already started.
Several foreign companies are looking to invest in largely un-tapped renewable energy market of Iran. A consortium of Iranian, Indian and South Korean companies aims to set up an energy park in the Khuzestan province in a $10 billion project consisting of 1 GW of solar power capacity. Also, German companies are expected to begin building wind farms in Iran from next year.