Chinese metallurgical and energy group Sinosteel Corp has signed a pact with Italy-based Denikon to jointly build a solar park in Iran with a capacity of up to 1,000 MW, the Islamic Republic News Agency (IRNA) reports.
The memorandum of understanding (MoU) envisages the construction of a solar park of between 500 MW and 1,000 MW in the city of Yazd, central Iran, 20,000 residential solar plants and a photovoltaic (PV) panel manufacturing facility.
The project in solar-abundant Yazd, which is included in the UNESCO World Heritage List, is expected to help the city lower its dependence on fossil fuels for power generation. Meanwhile, 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.
According to the report, state-owned Sinosteel has already invested USD 2.5 billion (EUR 2.1bn) for projects in Iran.