German Co. May Invest in Renewables

German Co. May Invest in RenewablesGerman Co. May Invest in Renewables

A German company has offered to invest $1 billion to develop wind power in Iran, deputy energy minister said, Mehr news agency reported Sunday.

“We have had several negotiations with international investors, especially Europeans, for their return to Iran’s electricity market,” said Esmaeil Mahsouli. He did not name names.

German energy companies have devised a new technology to reduce the costs of electricity generation via renewable means, according to Mahsouli. Production of one kilowatt-hour (kWh) of wind power costs Germany 7 cents, a competitive price compared to output from thermal power plants.

Wind power, as an alternative to fossil fuels, is plentiful, renewable, widely distributed, clean, produces no greenhouse gas emissions during operation and uses little land. Several commercial delegations have visited Tehran in the past few months to discuss investment and cooperation with the energy ministry, but no agreement has been signed with Europeans as yet.

The ministry intends to produce clean and inexpensive electricity by expanding ties with distinguished international companies in the power sector.

Mahsouli stressed that the outcome of nuclear talks between Iran and the world powers would prove decisive in foreign investment in Iran’s energy sector.

“It is anticipated that following an agreement between Iran and P5+1, international investors and companies with advanced technologies will come to invest in the water and electricity sector.”

The US imposed tough sanctions on Iran to curb the country’s nuclear program which it claims is geared to military use. Iran insists its program is peaceful. Iran and P5+1 have been holding marathon talks over the past year to reach a mutually acceptable “comprehensive deal” by a November 24 deadline that was set when the sides failed to reach an agreement before a previous deadline in July.