Satba’s New Power Buying Model to Incentivize Private Sector Producers

To encourage private power producers, the Renewable Energy and Energy Efficiency Organization (Satba) has changed the previous model that guaranteed electricity purchase for 20 years, managing director of the state-run company said.
“Based on the new model, the investment and its interest will return to investors within four years, which is equivalent to the purchase of electricity produced in about seven years,” Mahmoud Kamani was also quoted as saying by ILNA.
By paying their money back in four years, the owners of power plants will deliver the generated power to us for six to seven years, and after that, Satba has no obligation to buy electricity like the previous model, and the owners of power plants will deliver electricity to the Iranian market for a period of 20 years, he added.