Electricity generation from fossil fuels is neither financially viable nor environmentally sustainable, compared to renewable resources that contribute to sustainable economic growth, the head of the Energy Commission of Iran Chamber of Commerce, Industries, Mines and Agriculture said.
“Generating each kilowatt of electricity in thermal power plants costs 20 cents while the production of the same amount of green power costs less than 10 cents, showing that clean energy is a game-changer and key to developing power sector,” Arash Najafi was also quoted as saying by IRNA.
The generation of electricity by thermal power stations needs fuel as feedstock and water for cooling purposes and also pollute the environment, whereas renewables, being eco-friendly, require neither fuel nor water, nor do they emit greenhouse gas.
Comparing the cost of the fuel supplied to thermal power plants and the money needed for constructing new renewable plants, the official said fuel consumption costs in three years equals the investment for building several renewable power plants, which can operate for decades without using any fuel.
Currently, 980 MW of electricity are produced through renewable resources in Iran, which account for about 1% of the total power production capacity in the country (86,000 MW).
Solar and wind power costs have continued to fall, complementing the more mature bioenergy, geothermal and hydropower technologies.
Solar photovoltaics showed the sharpest cost decline over 2010-20 at 82%, followed by concentrating solar power at 47%, onshore wind at 40% and offshore wind at 29%.
According to the official, some foreign private companies have expressed readiness to set up photovoltaic cell and panel production lines in Iran, a part of their products can be sold in the domestic market and the rest can be exported.
Najafi believes that collaboration between domestic companies and international firms can help expand solar power industry in Iran.
CO2 Emissions
Renewable energy is the least expensive option for improving access to electricity, reducing air pollution and cutting CO2 emissions.
It also contributes to boosting global gross domestic product growth by 1%, employing close to 29 million people and generating a 15% increase in welfare, mainly through health benefits from reduced air pollution, based on a report by the International Renewable Energy Agency.
Renewables can help transform unsustainable production and consumption patterns, protect biodiversity, reverse deforestation and combat land degradation.
Referring to the government’s tenders for the construction of renewable power plants last November, he added that the Energy Ministry received 153 applications for building 90,000 MW of renewables capacity.
The Renewable Energy and Energy Efficiency Organization (Satba) signed contracts with 12 private firms last week for generating 30,000 MW of electricity via renewable sources in the next four years. The contracts include the construction of solar, wind and hydroelectric power plants.
The Energy Ministry’s estimates suggest that launching 10 GW of new renewables capacity will save the country 5.6 billion cubic meters of natural gas for supply to conventional power generation systems every year.
Investment by private firms in the sector has surpassed $1.1 billion, mostly in solar power and the government attempts to encourage private producers to play a more active role in the renewable sector.
Incentive for Investors
Offering higher prices is an incentive for investors. Tariffs for purchasing different types of power stations increased last May and reached 4.4 cents and 4 cents per kWh for photovoltaic power plants and wind farms respectively.
According to Energy Ministry data, solar and wind account for 48% and 36% of the domestic renewable power production respectively.
Small-scale hydroelectric plants, waste-to-energy plants and biomass factories constitute 13%, 2% and 1% of the total renewable output, respectively.
Iran has a diverse climate with vast windy lands and more than 300 sunny days a year, which make it ideal to tap into wind and solar power.
There are more than 115 large solar farms in the country and around 3,500 small-scale solar installations in cities and villages. Over 2,500 rooftop photovoltaic power stations will be set up by next year, mainly in deprived and rural areas.
Over $100 million have been earmarked in the budget bill for the next Iranian year (March 2022-23) for the expansion of renewable energy, Energy Minister Ali Akbar Mehrabian said.
“This is an unprecedented figure, as the credit is exclusively dedicated to this sector,” Mehrabian said, adding that the fund will enable the government to attract more private investments into the sector.
The bottom line is that moving from brown to green energy is the direction of the future, one that is ripe with business opportunities and near-term benefits such as cleaner air and new jobs. It is not an option, but an imperative for achieving a better economy and better lives.
