As long as electricity prices (generated with the help of fossil fuels) are not modified, plans to expand renewable energies will not materialize.
The government reportedly plans to raise the current share of renewables from the current 841 megawatts to 5,000 MW by 2022. The aspiration appears to be a tall order because in addition to financial constraints, developing renewable plants remains a low priority for the government.
A major breakthrough in expanding renewable power is highly unlikely because no budget has so far been allocated to develop renewables by the government in the current fiscal year (started March 21), IRNA reported.
Since the domestic renewable energy sector is unable to compete with low-cost and subsidized fossil fuel-based electricity, individual investors won't risk their money.
The private sector is unwilling to embark on green ventures not only due to the Energy Ministry's reluctance to allow reasonable tariffs for electricity (produced by private companies), but also owing to the latter’s inability to compete with state power firms, most of which receive cheap natural gas as feedstock.
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