TEHRAN - Tehran and Beijing have reached an initial agreement on Chinese investment in Iran’s renewable energy sector, with a Chinese company set to cover 70 percent of the investment.

The preliminary deal was made during a trilateral meeting involving Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) Energy Committee, the Atomic Energy Organization of Iran (AEOI), and a Chinese economic delegation.

According to the ICCIMA portal, the meeting was attended by Arash Najafi, head of the Iran Chamber’s Energy Committee; Nematollah Torki, deputy for management development and resources at the AEOI; and a representative from China’s Hainan Elite Energy company.

During the discussions, both sides agreed to draft the investment agreement while the Chinese delegation remains in Iran, with plans to finalize and sign the document soon.

Liao Ghohui, representing Hainan Elite Energy, emphasized Iran’s commitment to expanding its renewable energy capacity and noted that his company, a semi-state-owned entity established in 2017, has developed a solid understanding of the Iranian market. He highlighted that Iran’s policies in the renewable energy sector provide a favorable environment for investment.

Ghohui also referenced his recent meeting with Iran’s Renewable Energy and Energy Efficiency Organization (SATBA), which has set a goal of expanding renewable energy capacity by 5,000 megawatts. He noted that initial collaboration with Iran would start on a smaller scale, with the potential for expansion in the future.

Under the preliminary agreement, 70 percent of the investment will be provided by the Chinese company, while the remaining 30 percent will be covered by an Iranian firm. After returning to China, the delegation also plans to introduce private sector partners for further cooperation with Iran.

Torki, representing the AEOI, stressed the organization’s commitment to facilitating private sector involvement in clean energy development. He reaffirmed that there are no restrictions on private sector participation and that the AEOI welcomes both domestic and foreign investment in the sector.

He added that financial models and investment mechanisms must be clearly defined but assured that there are no limitations on the scale of clean energy production Iran can undertake in partnership with foreign investors.

The meeting concluded with an agreement to draft and finalize a memorandum of understanding (MOU) for investment in Iran’s renewable energy sector, with further discussions planned for a broader cooperation agreement.

EF/MA