German Co. Signs $108m MoU to Build Solar, Wind Plants

Germany’s Medio Energy signed a memorandum of understanding for the construction of a wind and a solar power plant in south Iran.

The agreement, which is worth $108 million (€104 million), was signed by Khuzestan Regional Electricity Company and Germany’s Medio Energy Invest GmbH & Co. KG, to build the solar and wind units in the cities of Shushtar and Bandar-e-Mahshahr in Khuzestan Province, Mehr News Agency reported on Saturday.

Mahmoud Dashtbozorg, managing director of Khuzestan Regional Electricity Company, expounded on details of the two agreements with the Germans.

“The cooperation agreement with Medio Energy was signed in line with the declared policy to promote renewable energy and attract foreign investment,” he said.

“The deal covers construction and implementation of a 20-megawwat solar power station in Shushtar through direct investment worth €24 million in addition to building a wind power plant in Bandar-e-Mahshahr with an output capacity of 50 MW and costing €80 million."

He added that the German investor has agreed to provide technical knowledge, workforce, capital, technical and economic capabilities as well as necessary equipment for the construction of the power plants.

Dashtbozorg asserted that the government has spared no effort to provide grounds for attracting domestic and foreign investments for the key electricity industry with special emphasis on renewables.

Andreas Langberg, an executive at Medio Energy, said on the sidelines of the signing ceremony, "In view of Iran’s inroads and potential in expanding its renewable sector, we are eager to begin our activities here immediately.”