The Khuzestan Governorate last week signed preliminary agreements with investors from Poland and Denmark to expand wind farms in the southern Khuzestan Province.
According to the governorate’s official website, the agreements to install an unidentified number of 50-megawatt wind turbines will require permits from local authorities.
The wind farms, estimated to cost €80 million ($94.5 million) each, will be built in the cities of Khorramshahr and Izeh in the west and east of the province.
Gholamreza Shariati, the governor general of Khuzestan, said he had signed memoranda of understanding with Polish and Danish investors during his visit to the two European nations in the previous fiscal year (ended March 20, 2017), paving the way for their presence in the province’s renewable power industry.
Underscoring the province’s readiness to attract foreign investment in other energy sectors, such as oil and petrochemicals, Shariati said, “We are currently prepared to cooperate with investors on financing a petrochemical plant in Andimeshk County.”
Iran's installed power production capacity is around 77,000 MW, but output from renewables comprises less than 1% of that amount.
According to published reports, the country plans to raise the capacity by 1,000 MW each year over the next five years.
Among Europeans, German energy companies have been quick in expanding their foothold in the Khuzestan market since international sanctions against Iran were lifted in early 2016.
In August, Iran green-lighted a joint venture to build a 50-MW wind farm in Arvand Free Trade Zone, which will be financed by the German company eab New Energy GmbH.
According to Mehr News Agency, another Germany company Medio Energy last year signed an MoU for the construction of a wind and a solar power plant in Khuzestan. The agreement, worth over $100 million, was signed by Khuzestan Regional Electricity Company and Medio Energy Invest GmbH & Co. KG.
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