Over the last few months several international companies have expressed plans to implement renewable energy project. Now, a German company is expected to become probably among the first international companies to set up renewable energy project in the Middle Eastern country.
German company Planet in Green announced that is has been chosen by the Iranian government to set up 100 MW solar power project. The company has signed 20 year power purchase agreement with the Iranian renewable energy organisation.
The company has reported that it has already started site preparation for the project and construction is expected to begin later this year. The company shall sell electricity from the project at US¢10.5/kWh.
Planet in Green also reported that it plans to set up additional solar power projects but with much lower installed capacity of around 10-20 MW.
Last year, an unnamed German company was reported to have struck a deal with the Iranian government to set up 1.25 GW solar power capacity. 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.
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.