European solar energy companies are unlikely to return to the projects in Iran due to the US sanctions, but China and India may fill this vacuum, James Watson, Chief Executive of SolarPower Europe association, told Sputnik.
BONN (Pakistan Point News / Sputnik - 06th September, 2018) European solar energy companies are unlikely to return to the projects in Iran due to the US sanctions, but China and India may fill this vacuum, James Watson, Chief Executive of SolarPower Europe association, told Sputnik.
Before US President Donald Trump announced the withdrawal from the Iran nuclear deal and re-imposition of sanctions, many European solar companies were developing projects in Iran. However, unwilling to lose access to the US market they scaled back engagement in Iran.
"I was myself in Iran about a year ago with the delegation of solar companies, we met with the deputy minister of energy, and he was very positive about strong investment in Iran. Since then, with the US administration changing its mind about the Iran deal, basically most of these countries are no longer considering investing in Iran, because of the punitive issue," Watson said on the sidelines of the IRENA Innovation Week in Bonn.
He added that due to the seriousness of the US steps, the producers have decided to stay back for the time being.
"The sanctions the Americans are using are tough. For now, we are rescaling back our interest in Iran," Watson added.
European solar energy producers now prefer developing photovoltaic power projects in India and Africa, according to the association head.
"Globally the whole solar system is booming. European countries are active from Bolivia to Burma, all the way across the Pacific, all around the world. At the moment, we run in emerging markets, our focus is particularly on India and French-speaking Africa, Mozambique," Watson said.
For example, Finnish company Fortum has its biggest solar energy project in India.
As for the Iranian renewables, they may turn out to be attractive for those who would not prioritize access to the American market - primarily, for China.
"China could probably invest," Watson said, asked who could be able to retake the vacant European solar producers' share in Iran, adding that India could also invest but "it's just increasing unlikely to be Europeans."
In May, Trump announced his decision to leave the Iran nuclear deal, and reimpose sanctions against Tehran and third states doing business with Iran. The first set of restrictions, which include a ban on purchasing US Currency, trading in gold and other precious metals, buying aluminum and steel for industrial purposes, and performing activities related to Iran's sovereign debt, took effect on August 7. The second portion, including sanctions on Iran's port operations, energy sector and foreign transactions, will be effectuated in November.
Following the US withdrawal from the deal, the European Union along with other signatories to the accord has repeatedly stressed their interest in preserving ties with Iran. Since then, the European Union has amended its Blocking Statute to protect the interests of EU companies doing business with Iran.
