Iran eyes $12bn green power
01 August 2016
Iran is planning its first tender for utility-scale renewable energy projects by the year end as it begins a green power buildout that could draw $12 billion of investment by the time it’s complete.
The nation wants to install 5 gigawatts of renewable energy in the next five years and an additional 2.5 gigawatts by 2030, Iran’s energy minister Hamid Chitchian told Bloomberg in an interview in London.
“We’re not going to use the money from oil in that sector at all,” Chitchian said. “All the investment will be done by the private sector, including local and foreign companies.”
Most of Iran’s power plants are over 40 years old and need to be renovated and repowered, he said. The government is planning to invest a total of $50 billion in its electricity system in the next seven years.
According to him, Iran will tender 1 gigawatt of wind and 3 gigawatts of solar power, likely in several stages. It is also seeking to build biomass and geothermal plants and swap natural gas for electricity with Armenia, stated Chitchian.
Iran may also add solar to its system of energy swaps, which before sanctions were lifted allowed the country to trade crude for refined products. Under a so-called “solar for service” programme, developers and land owners would split cash flows generated from power sales.
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