To produce Solar photovoltaic(PV) panels in Iran, Iran's Industrial Development and Renovation Organisation(IDRO and a consortium of Chinese and Hong Kong companies has signed an agreement for Joint venture. IDRO's website announced a statement for establishing an automated production line for solar panels, the preliminary deal with China's Sunshine Solar Technology and Konda Energy of Hong Kong has been signed. The agreement will be finalised in a month, with IDRO having 30% stake in the project.
Deputy for Advanced Industries Development at IDRO, Fardad Daliri, said that, to expand research and development in solar power, this joint venture will serve as platform. Islamic Republic News Agency(IRNA) reported that the project is expected to cost around $215 mn. The East Asian firms join the ranks of European companies in a race to tap into Iran's underdeveloped renewable energy market, which is attracting billions of dollars in finance for new solar and wind projects.
Since last year's lifting of sanctions, foreign investors have proposed over $4 bn worth of renewable power projects, stated government reports in October. According to statement by government spokesperson in last month that President Hassan Rouhani's administration has ratified the construction of €6.3 billion ($7.3 billion) worth of renewable power projects through foreign investment. Central has given new contract worth $2.9 bn to Norway's Saga Energy, which is a preliminary agreement and $600 mn contract to London based Quercus, with the latter committed to building one of the world's largest solar farms with a 600-MW capacity.
IDRO has been expanding its campaign in energy sector, which previously has operated in agriculture, commercial, mining, railroad and aviation sector. Germany's SCHMID Group signed a deal with IDRO last year to "establish a fully integrated photovoltaic manufacturing plant" in Iran that would incorporate the "entire photovoltaic value chain", reads a statement on SCHMID's website. Russian gas giant Gazprom also signed an initial agreement with IDRO last month to cooperate in unspecified oil, gas and energy projects.
Competition have been heated up in Iran's solar and wind sector as government plan to lift the trifling shares of renewable, Iran holds some of the world's largest oil and gas riches and renewable energy sources, have long lived under the shadow of fossil fuels that meet most of the country's energy needs. Renewable account for less than 500 megawatts in Iran's installed power generating capacity of 77,000 MW.