BAKU, Azerbaijan, February 17. Solar power stations with a combined capacity of 1,750 megawatts will be built in Iran, funded by a 3.89 billion yuan (approximately $537 million) loan from China, Trend reports.
This project follows a decision by Iran's Economic Council, which was announced by the head of the Plan and Budget Organization, Hamid Pourmohammadi, to the Ministry of Energy. The ministry will use the funds to build the solar power stations.
The total value of the credit agreement between Iran and China is 4.58 billion yuan (about $632 million), with an initial payment of 996 million yuan (about $137 million) made as part of the contract.
Under the terms of the agreement, Iran is committed to fully repaying the loan to China by 2035, bringing the total repayment amount to 4.89 billion yuan (about $675 million).
According to the Renewable Energy and Energy Efficiency Organization of Iran (SATBA), before this agreement, Iran's renewable energy potential for electricity production stood at 1,317 megawatts. The potential for solar power stations in Iran is currently 608 megawatts.