Norwegian Company Negotiates with Iran to Build Solar Power Plant

The Norwegian company 'Scatec Solar' is in negotiations with Iran to construct a solar power plant. Raymond Carlsen, the CEO of this Norwegian company, stated in an interview with Reuters that the plant will initially produce 120 megawatts of electricity, with plans to increase capacity to 500 megawatts in the next phase. According to a report published by Reuters on Friday, September 15, this Norwegian company is joining the wave of Western companies exploring investment opportunities in Iran. Carlsen mentioned that the cost of producing each 100 megawatts of solar electricity in Iran is approximately $120 million, potentially rising to a maximum of $132 million. The report highlights Iran's heavy reliance on oil and gas for electricity generation, contributing to air pollution in the country. Statistics from the Ministry of Energy indicate that in the last solar year, Iran consumed over 61 billion cubic meters of gas and about 11 billion liters of fuel oil and diesel for electricity production, with renewable sources accounting for less than 0.4% of Iran's electricity generation. Meanwhile, Iran had planned two years ago to increase its renewable energy capacity to 5,000 megawatts by the year 1400 (2021). The latest weekly statistics from the Ministry of Energy show that as of September 8 of this year, Iran's total renewable energy generation capacity has reached only 301 megawatts. A portion of this capacity comes from solar energy. Reuters also reports that, according to the Ministry of Energy, 53 megawatts of solar electricity generation capacity has been established in Iran so far, but the country has signed agreements with 76 companies to study the production of 932 megawatts of solar power plants. The report notes that after the nuclear agreement, many sanctions against Iran were lifted, but investment challenges persist due to the risk of these companies falling under U.S. sanctions and concerns about ensuring profitability from investments made in Iran. Scatec Solar states that the governments of Norway and Iran are negotiating to resolve financial issues. This Norwegian company has so far launched 1,800 megawatts of solar power projects from Europe to Africa and Latin America.