News ID: 215727
Published: 0212 GMT May 26, 2018

Foreign investors financing solar power plants in Iran's Yazd

Foreign investors financing solar power plants in Iran's Yazd

Investors from Germany, Italy, France and Greece are financing solar power plants in the central Iranian province of Yazd, said managing director of Yazd Regional Electricity Company.

The power plants, located in the cities of Ashkezar, Mehriz and Dehshir, each have an electricity production capacity of 10 megawatts per year, said Mohammad Hassan Sabbaghzadegan, according to IRNA.

He added that the power plants' production capacity will be increased from 10 MW to 70 MW by yearend.

Iran's last major solar power plant was inaugurated in February 2016 in the western province of Hamedan. The plant comprised two seven-MW units.

Iran is heavily dependent on natural gas and oil to generate power. It is one of the most energy-intensive countries in the world because government subsidies for fossil fuels encourage inefficient energy use.

Water shortage and air pollution, however, is becoming an acute problem for the country of more than 80 million people, forcing officials to embrace the idea of expanding renewable energy capacity.

Existing wind and solar capacity is tiny. According to SUNA (Renewable Energy Organization of Iran), there are only 15 wind farms in the country.

Iran is seeking 5,000 MW of renewable energy by 2020, with more than 4,000 megawatts expected to come from wind power. The country has approximately 141 MW of installed wind power.

SUNA is looking to attract $10 billion of direct private investment by 2018 and $60 billion by 2025. The national grid is also being upgraded so it can cope with an influx of renewables.

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