Norway’s Scatec Solar, a company specializing in renewable energy, is in talks to build its first solar power plants in Iran, joining a wave of foreign energy firms looking to invest in the Islamic Republic, Reuters reports.
According to Reuters, the Oslo-listed firm, which builds and operates solar power plants worldwide, wants to generate 120 megawatts of power in Iran, planning to increase it to 500MW at a later time.
“I wouldn’t like to say by when we expect a signed deal but we are actively working on it,” CEO Raymond Carlsen said in an interview.
The initial project under discussion would cost $120 million per 100MW installed, he said, or roughly $132 million.
According to Iran’s Energy Ministry, Iran’s installed solar energy capacity is currently 53MW, but 76 firms have signed deals to study building an extra 932MW of capacity.
Scatec Solar said Iranian and Norwegian authorities were trying to help the company secure financing for the project.
“They (Norway) will provide us with guarantees that will enable us to raise international and domestic financing,” said Chief Financial Officer Mikkel Toerud. Oslo was also willing to help finance future projects in Iran, he added.
Foreign energy companies are starting to invest in Iran following the lifting of some international sanctions against the Islamic Republic after the signing of nuclear deal dubbed JCPOA.