A report by Forbes says European firmsare pouringtheir money into renewable energy projects in Iran, which is the most advanced country in the region in terms of renewable energy development.
“When it comes to energy sources the Middle East may be synonymous with oil, but these days governments across the region are trying to develop other, greener sources of energy,” a Tuesday report by Forbes noted.
“Iran is the most advanced in its development of renewable energy, mostly due to its past investments in hydropower schemes,” the report said.
“Lately, however, it has been taking big strides in terms of wind and solar power, with a slew of new projects announced over the past few months.”
“The largest to date was unveiled on October 17 when Norway’s Saga Energy signed a €2.5bn ($2.9bn) deal with the state-owned Amin Energy Developers to build a solar power plant with generating capacity of up to 2GW over the next five years,” it added.
“The deal is typical of many of the renewable energy deals in Iran in that it is a European company making the investment. Among other recent examples, Norway’s Scatec Solar has said it is in talks to build a 110MW solar power plant, worth around $132m; it could expand it to 500MW at a later date.”
“In addition, Hashem Oraee, president of the Iran Wind Energy Association (IRWEA), recently told local media that Danish companies are ready to invest as much as $1bn in renewable energy projects in Iran,” the report said.
“It is not just Nordic countries which are getting involved. On September 20, the UK’s Quercus said it planned to deliver 600MW of solar power in Iran at a total cost of some €500m. Local media have linked Germany’s Solarwatt and Italy’s Finergy Company to other schemes. In June, a delegation of seven German renewable energy companies toured North Khorasan province to examine potential sites for solar and wind power projects.”
“Some smaller projects are already at or near completion. In late July, work was completed on the 20MW Mokran solar power plant in Kerman province, backed by a joint venture of Germany’s Adore and Switzerland’s Durion. The companies are planning a 100MW solar plant for an adjoining site. In April, Iran’s Ghadir Electricity and Energy Company and Greece’s Metka announced they had completed a 10MW plant close to Isfahan. In February another 14MW solar plant was unveiled in Hamedan, in the west of the country,” it went on to say.
“In total, these deals are adding up to many billions of dollars of investment into the Iranian economy. In April, Iran’s deputy economy minister Mohammad Khazaei said EU countries had invested $3.6bn in Iran’s energy sector since January 2016. […]Khazaei told the 1st Iran-European Union Business Forum on Sustainable Energy in Tehran that the government had “so far approved of 48 projects for electricity generation through renewable energies,” the report added.
“There are a few reasons behind the rush of investment, including favourable investment terms on offer from the Iranian government. The country’s Energy Ministry typically signs deals guaranteeing to purchase the output of renewable energy plants for 20 years, via the Renewable Energy Organization of Iran (SUNA). The plants are also tax exempt for between five and 13 years.”