Xinhua -- A Bulgarian company signed a Memorandum of Understanding (MoU) with Iran to develop solar photovoltaic infrastructure in the Iranian central city of Jahrom, Financial Tribune daily reported on Saturday.

"The first investment agreement in the Jahrom Special Economic Zone has been signed with Solar & Benefit Corporation (Bulgarian renewable power developer) to build a photovoltaic power plant," said Alireza Sahraeian, the governor of Jahrom.

The official did not specify the plant's capacity or the value of the investment, but said the deal is to meet the electricity demand of a population of 230,000 in Jahrom.

"The agreement is to provide part of the country's power needs and to boost supply stability in the region through renewable energy resources," he said.
Jahrom is approximately 200 km off the Persian Gulf coast and 800 km south of the capital Tehran.

Solar & Benefit will be compensated for 20 years at a price of 15.2 euro cents per kilowatt hour. The Bulgarian enterprise operates through its local company Solar & Benefit Persia.

The Sofia-based company plans to develop power projects in Iran with a total output capacity of 400 megawatts in collaboration with Grass Group, a German solar energy EPC contractor.