Post Bank of Iran to help fund 50-MW solar park - report

The Post Bank of Iran has committed to provide USD 70 million (EUR 56.8m) in financing for a 50-MW solar project in the Asian country, the Islamic Republic News Agency (IRNA) reports.

The funds will be allocated under a memorandum of understanding (MOU) signed between the lender, consulting and project management firm Solar Power Plant Project Management Co and solar panel maker Solar Sanat Firouzeh. Specific details about the scheme were not provided.

The pact aims to support the involvement of private sector entities in developing Iran’s solar market, Mostafa Azad, a member of Iran Electrical Industry Syndicate, said as cited by IRNA. Under its terms, companies will be able to get five-year loans, which will be repaid through the country’s Ministry of Energy with revenues that will be brought from the new solar park.

The project will be implemented as part of a larger initiative worth USD 850 million aimed at expanding renewables capacity in Iran, Azad said, adding that the non-governmental organisation has already signed 550 contracts with private firms for installing small solar power facilities.

Iran’s government has set an objective to install 5,000 MW of new renewable energy capacity by 2020 and an additional 2,500 MW by 2030. At present, the country is highly dependent on thermal power generation and renewables account for just 450 MW of its total installed power capacity of 75,000 MW.

(USD 1.0 = EUR 0.812)

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