S. Korean, Italian Firms Eye Energy Contracts

S. Korean, Italian Firms Eye Energy ContractsS. Korean, Italian Firms Eye Energy Contracts

Companies from South Korea and Italy dealing in power plants, renewables and clean energy will propose collaboration in green energy projects in Iran during the  Conference of Mayors and Councilors 2016 which will be held in Tehran July 20-21.

Parviz Moshama’chian, organizer of the Iran-South Korea business meetings during the conference, told Shana that major state-run and private companies from South Korea are interested in investment and construction projects in Iran.

The South Koreans will discuss construction of gas-fueled power plants, solar combined-cycle plants with F-class turbines, wind power plants, smart urban management systems as well as manufacturing electric and hybrid vehicles.

The two-day meeting will host 1,800 delegates, including mayors from France, Australia, South Korea, Belgium, Czech Republic, the Netherlands and Spain as well as Iranian mayors and city councilors.

More than 100 experts and investors from the US, UK,  China, Italy and Switzerland, among others, are expected to attend.

Davood Nadim, head of investment committee of the conference, said that Italian firms are expected to sign a raft of memoranda of understanding with Iran mainly related to green energy, restoration of polluted areas and curbing emissions.

Seventeen Turkish firms have signed up for the event to explore opportunities in financing, urban development, tourism and new energies.

  Renewables Growth

Global investment in renewable energies is steadily growing, given the relatively attractive price of photovoltaic systems and wind turbines, according to Bloomberg.

Despite lower prices of fossil fuels, investments in renewable energies have seen a significant leap between 2004 and 2015. Last year, global investments in renewables reached $329 billion, overtaking, for the first time, those in fossil-based energies that reached $253 billion.

Around 61,000 MW, or more than 80% of Iran's 74,000-MW output, is generated from thermal plants that burn fossil fuels to generate electricity and are seen as major pollutants. In addition, 12,000 MW comes from hydroelectric plants and only 1,000 MW from nuclear power.

Given the cost and danger of carbon-based fuels and the worsening air pollution that has saddled the country for years, the government is taking steps to increase  investment in its meager renewable energy infrastructure.

Over the past 10 years, the Renewable Energy Organization of Iran—an affiliate of the Energy Ministry—has endorsed renewable projects with a total output of 5,000 MW. So far, contracts for barely 700 MW have been finalized.