Iran’s Tehran province Electricity Distribution Company has announced that Iran and Germany entered into an agreement to build solar power plant in the country.
Under the deal, an undisclosed German electrical company will build a new 1250MW solar power plant in Tehran and in some other Iranian cities.
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The construction of the first solar power plant will start next year and the first plant will become operational by next year too.
Tehran province Electricity Distribution managing director Seyed Ali Barband said: "Following the final agreement with a major German holding, the company will construct a new 1250-megawatt solar power plant in Tehran as well as in some other Iranian cities.
"All the funding for the construction of the new solar power plant will be carried out by the German company. The German side, in turn, will enjoy facilities like guaranteed purchase of electricity as well as a 20-year lease on land at a very low price.
"The envisaged plan is to increase power generation capacity during the post-sanction era by various means including foreign direct investment, construction of new solar, wind and incinerator plants as well as building small-scale plants with distributed generation."
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By GlobalDataSo far, the deal for establishing 500MW solar power plants in Mallard Karaj, Kahrizak and Varamin in Tehran Province has been finalised.
The Tehran province Electricity Distribution Company also stated that the company is discussing with Asian and European investors including Chinese financers to build factories for manufacturing solar panels in the country.
The company said to have reduced power losses from 13% to less than 10%.
