Hamid Chitchian, Minister of Energy, Islamic Republic of Iran will give an outlook about the Iranian renewable energy policy within the next years. Mohammad Sadeghzadeh, Managing Director of Renewable Energy Organization of Iran (SUNA), Islamic Republic of Iran gives insights about the regulatory framework and Ahmad Jamali, Chairman of the Foreign Investment Office (OIETAI) explains requirements and opportunities for investments.
New export credit guarantees
Since this summer German companies can apply for Hermes export credit guarantees that faciliate doing business in Iran. With these guarantees, companies can protect themselves against the risks involved in foreign investment. Furthermore, the government in Tehran has announced new and more attractive feed-in tariffs (FITs). The new feed-in remuneration is valid until the end of the following Iranian year (21 March 2017).
FIT renumeration still attractive
In Iran, new remuneration has been introduced for systems with a capacity of 30 MW. Compared to the year 2015, the tariffs have dropped between 18 and 43 percent. Despite this decline, market observers see the remunerations as attractive, as long as favorable financing instruments are found.
Domestic business partner necessary
With the end of sanctions, the country has now also reconnected with the international banking system. As a result, the financing of projects and the transfer of funds has become much easier. Nevertheless, companies interested in becoming active in Iran must work together with a domestic business partner.
Loan from foreign banks recommend
In addition, financing must be organized directly by the project developer. Because of the extremely high interest rates in Iran, it is highly recommendable to take out a loan with a German or European bank.(HCN)
Related news:
