Italian Firm Signs Solar Plant Deal

An unnamed Italian company has sealed an agreement to build a solar power plant in the southern province of Hormozgan.

"The solar power station will have a power generating capacity of 100 megawatts and require €140 million ($163 million) in investment," Jasem Jaderi, the provincial governor of Hormozgan, told IRNA on Friday.

Jaderi made the statement following a visit at the head of a delegation to Italy’s southern region of Puglia to explore wide-ranging opportunities for collaboration and investment, including renewables energies.

The Iranian mission also toured plants for manufacturing satellite, plane and train equipment in the region.

Jaderi said Michele Emiliano, president of the Puglia Region, is expected to travel to Hormozgan in October to follow up on bilateral agreements.  If finalized, the solar venture with Italians will become the largest photovoltaic project in Iran to date.

International investors are increasingly looking at Iran as a strong market for renewable power projects.

"Foreign investors have submitted investment proposals, worth a total of $3.6 billion, to develop renewable projects in Iran," Hamid Chitchian, energy minister, told ILNA this month on the sidelines of the ground-breaking ceremony for a 30-megawatt photovoltaic plant in the city of Jajarm, North Khorasan Province.

The solar farm is planned to be financed and constructed by an unnamed Swiss company.

Photovoltaic projects are also being carried out in the cities of Arak, Isfahan and Hamedan, with a total output capacity of 10 MW or lower.

Chitchian added that four other solar plants with 30-MW output capacity are planned to be built in Jajarm and Esfarayen, southeast of North Khorasan.

The project is part of efforts to raise the low share of renewable sources in Iran's power industry that mostly uses fossil fuels to generate electricity.

Iran launched 14 MW and 100 MW of renewable capacity in its last two fiscal years respectively, while 800 MW of new renewable capacity are under development.

Energy officials say the country’s total installed capacity of renewable energy production will reach 1,000 MW by the end of the current fiscal year in March 2018.