Iran signs deal with German major for developing 1,250MW of solar power projects

Iran’s Ministry of Energy has signed an agreement with a German company to build 1,250 megawatts of solar energy projects in the hydrocarbon-rich country’s latest move to green its energy supply chain.

Great Tehran Electrical Distribution managing director Ali Barband said that the firm will set up multiple solar energy facilities in Tehran, Tabriz and Isfahan.

Financial details about the transactions have not been disclosed, but the deal includes construction of a 150MW facility in Kahrizak, 200MW in Varamin and 150MW in Malard :

“It was decided that the issue of land acquisition for construction of the plants is determined soon, after which a 20-year agreement for guaranteed purchase of power will be signed with the Germans”, Barband said. He also added :

“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.”

The German giant is expected to start construction for the first solar project under the deal in early 2016, and complete it by May 2016.

Around 94% of Iran’s power mix is derived from fossil fuels, which the country seeks to replace with renewable sources.

The government plans to install 5,000 MW of renewable capacity, putting Iran among the likes of the UK and France.

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