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China to finance Iran's solar power plant projects

Business Materials 16 November 2014 15:37 (UTC +04:00)

Baku, Azerbaijan, Nov. 16

By Umid Niayesh - Trend:

Iran and China are negotiating over the new round of cooperation in power industry projects, the Islamic Republic's Mehr news agency reported Nov. 16.

The negotiations are focused on design, manufacturing and installation of solar power plants, in particular in the capital city of Tehran.

The two sides have achieved some agreements about investment of Chinese companies for construction of solar power plants with 300 megawatts of power generation capacity in Tehran.

Iranian officials are hopeful to handle the capital's air pollution problem through replacing thermal power plants with solar ones.

It should be noted that the air over Iran's capital, Tehran, is among the most polluted in the world. Many Iranians suffer serious health problems as a result, according to some experts.

Head of Tehran Province Regional Electrical Distribution Company, Seyed Ali Barband said that the administration pursue the issue of installing solar power plants in order to control the air pollution.

The volume of Chinese investments in Iranian projects has increased from $23 billion to over $50 billion.

Earlier, Iranian Deputy Energy Minister Esmaeil Mahsouli said the Chinese funds will be used to implement industrial, development, and economic projects in the oil, gas, petrochemicals, water, and electricity sectors.

China has agreed to invest $23 billion in Iranian projects. However, Iran suggested China to increase the volume of investments in Iranian projects to $50-$52 billion.

Some $1.5-$2 billion will be invested in water and electricity projects, he noted.

The managing director of Iran's Renewable Energy Organization Yusef Armodeli said in October that Iran plans to produce 5,000 megawatts of electricity in the next five years using renewable energy sources.

The organization has comprehensive plans underway with respect to utilization of clean methods of energy supply, he added.

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