The Industrial Development and Renovation Organization of Iran and China’s Znshine PV-Tech Company signed a memorandum of understanding on Sunday to set up an automated production line of photovoltaic panels in Iran.

According to IDRO’s official website, the MoU will help attract foreign finance for the construction of a 200-megawatt solar plant. The agreement is estimated to be worth €20 million ($23.5 million).

Officials say the plant’s photovoltaic panels will be able to generate over 300 gigawatt-hours of electricity per annum upon its completion. Founded in 1988, Znshine is a power station developer and operator.

It covers a wide range of business, including projects on investment and operation, EPC services and module manufacturing.

Iran’s largest solar panel manufacturing company is under construction in Shiraz, the capital of Fars Province.

Fars and Bushehr provinces are leading the field in developing solar panel manufacturing plants. A total of 83 such plants are to be established in the two provinces.