In a bid to help industrialists generate their own electricity and not be at the mercy of the state-run Power Generation, Distribution and Transmission Company (Tavanir), the Renewable Energy and Energy Efficiency Organization (Satba) has speeded up the issuance of licenses to permit industrial units to harness renewable energy, the head of Legal Affairs Office at the state-run Satba said.
“Eight industrial units, which are mostly located in cement, steel and petrochemical facilities, are now allowed to construct solar and wind farms with a capacity of 2,314 megawatts,” Ahmadreza Tavakkoli was also quoted as saying y ISNA.
Giving a breakdown, he noted that of the total capacity, solar and wind power plants will account for 1,877 MW and 400 MW respectively and the rest is expected to be biomass systems.
“Licenses to build nine more renewable power stations with a capacity of 1,062 MW will be granted to other industrial companies in the near future,” he added.
As per the contract between Tavanir and industrialists, the former is obliged to help all industrial units set up solar or wind farms, with stable power all year round, especially during peak demand hours in June and July.
Manufacturing, fabrication and distribution environments can offload a considerable amount of their energy expenditure to renewable energies. Opportunities include lighting and climate control systems, material heating and cooling processes and chemical and petrochemical refinement systems.
Investing in clean, on-site power technologies will go a long way in saving energy and money.
According to Mohammad Javad Mousavi, the deputy head of the Iranian Renewable Energy Equipment Manufacturers and Suppliers Association, major breakthroughs have been made in storing solar power in batteries and concerns regarding fluctuations in power output are gradually being removed.
Investments in photovoltaic power projects can have several advantages for industries, especially steel mills, one of which is that a 10-megawatt solar farm can become operational in four months, he added.
Less Funding
The construction of renewable plants requires much less funding than building thermal power stations, the smallest of which costs $3 billion and they will take a minimum three years to be synchronized with the national power grid while steel factories need to cover the power deficit in the shortest possible time.
Mousavi noted that Tavanir’s power deficit amounted to 13,000 MW last June and manufacturing industries bore the brunt of the grave power supply crisis, as they were forced to halt operations repeatedly in June and July because the state-run utility company could not supply sufficient electricity.
Industries suffered from the same tragedy last December, as thermal power plants were not supplied with enough natural gas.
To compensate for the shortage, industrial units had to turn off their machinery. Frequent power outages in big cities adversely affected industrial units, taking a toll on electrical equipment and reducing their efficiency.
Based on data from the Energy Ministry and Tavanir, the gap between consumption and supply will keep widening in the coming years and the National Iranian Gas Company has announced that gas output will not increase over the next two years.
In fact, if industries do not invest in short-term power generation schemes, the scale and scope of their problems will increase exponentially.
Any business, whether in the industrial sector or in the services sector, needs electricity supply to operate its facilities. Therefore, having the best energy solution is vital for reducing the fixed costs of economic activity.
Solar energy is here to stay. It has already changed the power industry, its business model and the way electricity is delivered to the grid. There are many opportunities for businesses to take advantage of industrial-scale solar energy generation.
Due to the characteristics of this type of installation, solar panels are easier to install. This is another reason to enjoy the advantages of solar energy, especially if the industrial facilities are located in an area with good weather conditions that allow a good extraction of this type of energy.
Mainstream Alternative
Solar power panels are rapidly becoming mainstream alternative energy sources in the world. Many business owners might think that it is not affordable for small- or medium-sized businesses but that is not true.
In recent years, solar panels have dropped their price that makes them affordable for most homeowners.
The cost of purchase and installation continues to fall and there are new contracts in the marketplace, as providers offer lease-to-buy options while still offering energy below the prices offered by conventional utilities.
Fossil fuels and incumbent energy providers look backward. However, renewable energy is about looking forward. If you need proof that renewables are the future, consider the fact that they are increasingly instrumental in powering data centers efficiently and affordably.
Beyond solar and wind, there are biomass systems. Biomass is not as cost-effective, ubiquitous or mature as solar and wind, but it, too, is an essential part of renewable energy portfolios.