Foreign investors continue to flock to the budding renewable energy market in Iran following thaw in international relations with the Middle East country.
The British Photovoltaic Association (BPVA) recently signed an agreement with the Renewable Energy Organisation of Iran (SUNA) for the development of 1 GW solar PV power capacity in the Middle Eastern country. The agreement will also see development of 500 MW solar modules manufacturing facility in Iran.
The agreement is the latest in the long list of several similar deals signed with foreign governments and companies for the development of large-scale renewable energy projects in Iran.
The Iranian government plans 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.
Last month, 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.
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.
Two Italian companies also announced plans to set up 100 MW solar power projects each with installed capacity of 10 MW. The entire capacity of 1 GW shall be installed over a period of 9-10 years. The total investment for the programme is expected to be around $1.5 billion.
Apart from improvement in foreign relations, renewable energy market in Iran has also benefitted from the role of several supportive regulatory measures, including feed-in tariffs.