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Germany to invest $120m in Yazd solar power venture

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Staff Writer | October 12, 2017
Europe's renewable powerhouse Germany plans to build a solar farm in central Iran, following in the footsteps of a British company that landed the biggest solar power contract in Iran's energy market last month.
Iran solar
Green energy   A German-Iranian firm
"A German-Iranian firm aims to build 500 megawatts of new solar power capacity in the city of Meybod, Yazd Province," Amir Eslamnejad, an official at the unnamed company, was quoted as saying by IRNA on Wednesday.

Operations to build 100 MW of the capacity were expected to go underway on Thursday, according to the official who said the German side will fully finance the power project that is estimated to cost around $120 million.

"About 10 MW of the capacity are planned to join the power grid by the end of this fiscal year (March 20) and the rest will be launched by the end of the next fiscal," he said.

"About nearly 40% of equipment, including cables, distribution transformers and control systems, are planned to be supplied by domestic manufacturers. The venture will create 500 direct and some 3,000 indirect jobs."

In September, London-based renewable energy investor Quercus signed a $600-million deal to build a 600-MW solar power project in central Iran, the biggest renewable contract in Iran and one of the world's largest solar farms.

Germany and Iran both have populations of about 80 million, but share little similarities in the energy industry.

Iran meets more than 80% of its electricity demand from thermal power plants that run on fossil fuels while renewables account for a meager 420 megawatts, or less than 1% of its energy mix.