German group 'to build 1.25GW of solar' in Iran – report

An unnamed German electrical group has reached an agreement with the Tehran province electricity distribution company to build a 1.25GW solar power plant "in Tehran as well as in some other Iranian cities", the Iranian news agency Mehr reported.

"All the funding for the construction of the new solar power plant will be carried out by the German company," Seyed Ali Barband, the managing director of the Tehran electricity distribution company, is quoted as saying.

"The German side, in turn, will enjoy facilities like guaranteed purchase of electricity as well as a 20-year lease on land at a very low price."

German foreign minister Frank Walter Steinmeier last month was one of the first Western politicians to visit Iran as soon as it became clear that an end to the economic sanctions against the Islamic Republic was near.

During his visit, Steinmeier also discussed a possible cooperation between the two countries in the area of renewable energies.

The foreign office in Berlin had no immediate comment. Barband said that 500MW solar plants should be built in Mallard Karaj, Kahrizak and Varamin in Tehran province.

"According to the agreement, construction of the first solar power plant will begin in early 2016 and the first plant will become operational in May 2016 in accordance with the defined schedule," he is cited as saying by Mehr.