Great Tehran Electrical Distribution managing director Ali Barband said that the undisclosed major German electrical firm will be responsible for the development of several solar farms in Tehran, Tabriz and Isfahan, as part of the deal.
In particular, the company will construct 150MW in Kahrizak, 200MW in Varamin and 150MW in Malard, reported Press TV.
Additionally, the firm will build 750MW of solar projects in central Isfahan and northwestern Tabriz. Terms of the deal were undisclosed.
Barband was reported by Mehr News Agency as saying that the utility will fully finance the projects in exchange for a guarantee on electricity purchase. The firm will also be offered with 20-year lease on land for reduced price for the development of the projects.
The company is scheduled to commence construction of the first solar power plant in early 2016 and complete in May 2016.
Barband 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."
As part of the government’s effort to generate 5,000MW of electricity using renewable energy sources by 2018, the Energy Ministry is already developing 500MW of wind converters and 100MW biomass projects.
German companies are reportedly planning to invest $331m next year to build wind power plants in the country.
A consortium of Iranian, Indian and South Korean companies are considering investing $10bn to launch an energy park, which includes 1,000MW of solar power projects, in the Khuzestan province.
Barbandi said that plans are underway to reduce electricity network grid losses in Tehran to less than 10% from 13%. The losses have already been reduced 5% in the region over the past year.
Image: Iran plans to generate 5,000MW of electricity using renewable energy sources by 2018. Photo: courtesy of Naypong/ FreeDigitalPhotos.net.
