Trade Arabia reported that Iran is building the Middle East’s first geothermal power plant.

The pilot station will be in northwestern Meshgin Shahr, Ardabil province, at the foot of a dormant volcano.

The 50-megawatt project is meant to come on stream two years from now.

Energy Minister Hamid Chitchian added that 11 wells are being drilled for the geothermal power plant and that the energy harnessed will also be used for heating purposes during the winter.

According to Press TV, Chitchian also said that Iran plans to invest $50b in water and electricity projects to add 2,000 megawatts to the country’s 74,000 megawatts capacity.

Iran is currently suffering from a drought which is straining the country’s hydropower resources. Another 5,000 megawatts is meant to be generate by solar and wind energy by 2020.