Iran has signed a memorandum of understanding with Italian and Chinese investors on building solar power plants with a combined capacity of 100 megawatts in the central province of Yazd.
The agreement was signed on Sunday by Deputy Governor General of Yazd Province for Coordination of Economic Affairs Ali Zeynivand and the representatives of Italy’s Denikon Company and China’s Sinosteel Company in a ceremony marking the first anniversary of World Registration of Historical Texture of Yazd, IRNA reported.
The project includes establishing 20,000 rooftop photovoltaic panels each with a 5-KW capacity and setting up a solar panel factory.
With over 3,200 sunny hours throughout the year, the historical city is a suitable place for harnessing solar power.
Domestic and foreign investors have shown interest in the construction of plants for producing 700 MW of solar energy in this province.
The private sector's initiative to build a small-scale solar power plant will reduce fossil fuel consumption in the city.
Denikon Company is active in finding, promoting and developing international investment opportunities. China's state-owned Sinosteel is already present in Iran.
The company has so far invested $2.5 billion in the fields of mines, metals, power plants and transport.
Grasping Green Energy
The Energy Ministry says it has plans for 1,000 MW of renewable capacity a year through 2022 with the help of the private sector.
According to Energy Minister Reza Ardakanian, foreign investors have so far finalized $12.3 billion worth of contracts in Iran’s power sector.
“About $2.5 billion of power investments have been allocated to the construction of solar power plants, with a combined power generation capacity of 2,000 megawatts," he said.
Iran has a diverse climate of vast windy lands and more than 300 sunny days a year, which makes it ideal to tap into wind and solar energy.
According to Ardakanian, making use of such energies instead of water-intensive methods will to a great extent prevent water wastage.
The country has been hit with an unprecedented water problem this year due to low precipitation.
According to data released by the ministry, close to 2.1 billion kilowatt hours of electricity have been generated from renewable sources since June 2009.
"The generated power has helped the country save 474 million liters of water in the last nine years, of which 13 million liters were saved between Nov. 22 and Dec. 21, 2017," the report said.
Although the share of renewables stands at a meager 581 MW, measures are being taken to generate 7,500 MW from solar, wind, geothermal and biomass renewable power plants by 2030.
While Iran's installed electricity capacity is currently 80,000 MW, the country needs to import electricity in summer to meet domestic demand.
Ardakanian said, "We have the capacity to export 1,300 MW of electricity. However, during the summer, not only we can't export electricity, but we also have to purchase over 700 MW to meet domestic demand."
