South Korea’s KTC Company is set to develop a 200-megawatt solar plant in the southern city of Fasa in Fars Province in the current fiscal that started on March 21.
The company signed a deal worth $600 million in October 2016 with Fasa`s Islamic Azad University to build the facility in an area of 150 hectares. the portal of Iran Solar Power reported.
According to Mehrdad Karimi. the head of Fasa IAU. the project is planned to go on stream in 15 months.
`As per the agreement. the cooperation will be financed under build-operate-transfer contracts … KCT will hand over the plant with all the technology to Iran after 10 years of operation.` he added.
A BOT contract is used to finance large projects. typically infrastructure projects developed through public-private partnerships. Under a BOT contract. the company operates the project for a period of time with the goal of recouping its investment. before transferring the project to the government or another party.
The South Korean firm has also signed a deal worth $220 million with Iran’s Green Energy Company to build a 100-MW wind farm in the southern city of Zabol.
The agreement allocates a big share of supplying equipment and facilities to domestic companies and obliges the involvement of Iranian experts and workforce.
With the construction of the mentioned solar plant and wind farm. KTC will also transfer new technologies to the country.
KCT (Korea Computer Terminal Inc.) terminal manufacturer has been active in the banking and wagering terminal industries since 1974.
The country has grappled with a worsening drought and increasing temperatures over the past decade. But officials see a huge potential to harness the hot and dry climate for power generation. The hot and dry climate in Fasa is ideal for harvesting solar energy.
In the larger picture. the oil- and gas-rich nation has accelerated efforts in recent years to increase the trifling share of renewables. including wind and solar. in its power mix.
Thermal plants that burn fossil fuels make up more than 80% of Iran`s installed power capacity of around 77.000 MW. The share of renewables stands at a meager 450 MW.
The country has opened up its economic gateways to international investors since sanctions imposed over its nuclear dispute were lifted in early 2016.
According to the Renewable Energy and Energy Efficiency Organization. plans are in place to launch 5.000 MW in new renewable capacity. including solar and wind. by 2022.