The Investment Organization of Iran has approved a $13 million foreign investment for the construction of two solar power plants in Yazd, with 54% ownership by foreign investors from the United Arab Emirates. With 330+ sunny days per year and vast barren lands, Yazd is a prime location for solar energy expansion, contributing to Iran’s renewable energy goals. This project aligns with Iran’s strategy to attract foreign capital, reduce reliance on fossil fuels, and strengthen its clean energy infrastructure.
The Investment Organization of Iran has granted a new foreign investment permission in the solar energy sector, which signifies a new step in the country’s green energy expansion. This means that the approval of two solar power plants to be set up in Yazd province with a total investment of $13 million, in which foreign investors will own 54 percent of the project. The move underscored Iran’s push to attract international capital and accelerate the transition to clean and sustainable energy sources. Solar power plants with capacities of 14 and 15 megawatts are among the projects that investors from the United Arab Emirates (UAE) are developing in this area. The initiative represents an important step for Iran in its long-term vision of reducing the reliance on fossil fuels and increasing non-conventional energy sources in its generation portfolio.
In recent years, Yazd has become a significant center for the development of solar energy. The province has ideal conditions due to its average of more than 330 sunny days a year and an average of five kilowatt-hours of solar radiation per square meter. Its tremendous barren expanses also provide ample space to mount photovoltaic farms without interfering with agricultural or city growth. At present, Yazd has an installed capacity of 150 megawatts of solar power, with permits for another 210 megawatts following its development as an Iranian renewable energy hub. The Iranian government has been encouraging domestic and foreign investors to invest in the country’s clean energy transition, with programs and incentives to support the expansion of renewable energy capacity. The newest Yazd investment forms part of Iran’s ongoing plan to expand its renewable energy capacity, aimed at improving energy security and reducing greenhouse gas emissions, alongside luring foreign investment to support the electricity grid. With global energy demand transitioning to cleaner sources, Iran has positioned itself as an emerging marketplace for solar and wind energy projects by capitalizing on the country’s natural resources and geographical advantages. The UAE investors taking part in this project indicate foreign confidence in Iranian renewables and show potential for bilateral cooperation on sustainable development