Another European company has announced plans to set up renewable energy infrastructure in Iran after international sanctions on the country were lifted.

According to media reports, SCHMID Group signed an agreement with the Industrial Development & Renovation Organization of Iran to set up a fully integrated solar photovoltaic module manufacturing unit in the country.

After sanctions were lifted by the international community on Iran several countries and companies across the world have announced partnerships with the Iranian government to develop renewable energy projects.

Last year, Iranian media reported that a German company signed a deal with a German company to build 1,250 MW of solar power plants in the Tehran province. 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.

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.

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