Iran to host 1.25 GW solar PV project, reports Bloomberg

Bloomberg has reported information from Iranian news agency Mehr that a Germany company has signed a deal to build 1.25 GW of solar PV capacity near to the nation’s capital, Tehran.

The report does not name the company involved, but does reveal that "several solar power plants" will be built in the Tehran province, according to information relayed by Ali Barband, the managing director of Great Tehran Electrical Distribution Co.

A tranche of 500 MW solar PV plants will also be built in the cities of Karaj, Kahrizak and Varamin, with the German company’s involvement including full financing of the projects in exchange for long-term power purchase agreements (PPAs) and a 20-year lease on land at a low price.

In July a historic deal was struck that is likely to lead to the lifting of sanctions in the country from next year. This, Bloomberg suggests, could herald the return of international companies to various sectors, including Iran’s underserved energy sector.

The country has a previously stated its aim of installing 5 GW of renewable energy by 2020, and hopes to source 94% of its energy from clean sources in the future. According to Mehr news agency, the German developer will begin construction of the first solar PV plant early next year, with a completion and connection date scheduled for May 2016.