Iran begins a green power build out as it plans its first tender for utility-scale renewable projects by the end of the year. The green power projects could attract investments worth of $12b by the time it is complete, reported Bloomberg.

Iran’s Energy Minister, Hamid Chitchian, said that the country is looking forward to installing 5GW of renewable energy in the next five years. By 2030, Iran is aimed to reach an additional 2.5GW, Trade Arabia informed.

The Iranian Energy Ministry is in talks with some of the world’s largest renewable-energy players, including Vestas Wind Systems A/S and Siemens Wind Power, green energy investments. Juan Aratuce, Vestas’ Chief Sales Officer, stressed that the Islamic Republic could be an important market for wind energy. In addition, Iran Khodro Company and South Korea’s LG International are discussing joint development for electric vehicles.

Iran has also determined 12 separate feed-in tariffs for renewables based on technology used and the power plant’s size. The feed-in tariff system is to be used for projects less than 100MW, while the new tender system will be used for facilities with higher generation capacities.

Since the economic sanctions were dropped, Iran’s market has been courted with many investors targeting both oil and green power projects. However, Chitchian affirmed that money generated from oil will not be used in the green economy sector, adding that “all the investment will be done by the private sector, including local and foreign companies.”

Meanwhile, as most of the country’s power plants are more than 40 years old, the government is planning to invest a total of $50b in its electricity system in the next seven years to renovate its infrastructure.