Construction of a 10 megawatt solar farm in Barzak City, Kashan County in Isfahan Province began on Sunday in the presence of the deputy energy minister, Homayoun Haeri.
The farm will cost $7.3 million and is being built by private companies, Haeri said at the groundbreaking ceremony.
“The project will be completed in six months and equipment and solar panels will be provided by domestic companies and manufactures,” the Energy Ministry news website quoted Haeri as saying.
The central Isfahan Province has five solar power stations with total renewable power output at 16 MW. Iran has a diverse climate with vast windy lands and more than 300 sunny days a year, renewable power production is 860 MW -- a meager share compared to the total 86,000 MW.
More than 80% of Iran’s electricity demand comes from thermal power that use fossil fuels. With the ongoing projects renewable output is expected to reach 1,000 MW by 2022.
Emphasizing the need for a bigger role for private companies in developing the key power industry, Haeri said: "Currently, more than 60% of the electricity is produced by the private sector."
Due to government funding constraints and economic pressures, over the years private firms have taken the mantle to help develop renewable energy.
Private companies have invested $1 billion in the gradually expanding renewable sector, mainly solar and wind.
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