Norway’s Saga Energy to add 2 GW of solar in Iran - report

Norway-based solar installer Saga Energy (OTCMKTS:SAGA) has struck a EUR-2.5-billion (USD 2.9bn) preliminary agreement to install 2 GW of solar power capacity in Iran, Reuters reports.

The deal between Saga Energy and Iran's Amin Energy Developers was signed on Tuesday at the Tehran residence of Norwegian ambassador Lars Nordrum. It is still subject to certain economic guarantees from Tehran, Saga Energy spokesman Rune Haaland told the news agency.

The investment will be made over the next four-to-five years, allowing the installation of photovoltaic (PV) panels at various locations in Iran. Saga Energy will finance the project through bank loans and will also rely on pension funds and Norwegian state export guarantees. It expects to reimburse its investment through a 25-year off-take deal, the spokesman has said.

Solar panels for the ambitious project will be made by Saga Energy and Lithuania’s SoliTek, while the rest of the equipment, including inverters, will be supplied by Taiwan’s Delta Electronics Inc (TPE:2308).

Saga Energy’s project comes days after US President Donald Trump called for further isolation of Iran and announced he would cancel an earlier nuclear deal with the country. Regardless of the course of actions, the Norwegian group intends to proceed with its plans, Haaland told Reuters.

In September, London-based Quercus Investment Partners Ltd unveiled plans to invest in a 600-MW solar project in Iran that will be one of the largest in the world when completed.

(EUR 1.0 = USD 1.177)

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