Danish companies are ready to invest $1 billion in developing renewable energy projects in Iran, the president of the Iran Wind Energy Association (IRWEA) was quoted as saying in a media report.

Siemens and Vestas are willing contribute to implementing wind energy projects in Iran, Hashem Oraee was quoted in an Iran Daily report.

He added that Majlis also has approved the Danish investment plan, but it is yet to materialize.

"The US, China and many European countries plan to cut dependence on fossil fuels," said Oraee adding that by 2025, all of the electricity will be met from renewable energy sources.

"About 18-20 percent of air pollution comes from thermal power plants which use fossil fuels," said the IRWEA head.

Wind energy meets only 150 MW of Iran's total electricity demand, Oraee said, adding that based on the Sixth Five-Year Development Plan (2017-22), Iran's installed capacity of renewable-energy generation will amount to 5,000 MW.

Iran can generate 50 per cent of its electricity from wind and solar energy by enabling its capacities, Oraee noted.