Signed between Iranian company Sunir and Spain-based Bester, the agreement covers the launch of regional and international renewable energy projects in order to protect the environment, Islamic Republic News Agency (IRNA) reported.

Under the terms of the 18-month deal, the two firms will cooperate on design and production of equipment for solar and renewable energy while complying with environment protection policies.

Bester will initially provide consulting services to Sunir, and will subsequently operate as an investor with the latter in joint renewable energy projects.

The contract is intended to provide Iran with the new technology designed for renewable energy equipment.

Spain, which is said to be the world’s fourth largest solar power systems manufacturer, aims to produce 10,000MW of electricity using solar power by 2020.

Iran has earlier announced its plan to generate 5,000MW of electricity using renewable energy sources by 2018.

As part of the country’s effort to double the renewable energy capacity, Iran’s Power Generation and Transmission Company has unveiled its plan earlier this year to boost wind and solar power generation in the country.