To help Chadormalu Mining and Industrial Company generate its own electricity, the company has signed a contract with the state-owned Renewable Energy and Energy Efficiency Organization, aka Satba, to build a 100-megawatt solar farm, the CEO of the mining firm said.
“Estimated to cost $70 million, the plant will be constructed in Ashkezar County, Yazd Province, in 24 months,” Amir Ali Taherzadeh was also quoted as saying by IRNA.
Funded by Chadormalu, the main iron ore concentrate producer by direct reduction in the Middle East, the photovoltaic facility is expected to produce close to 190 million kilowatt hours annually, he said.
“Investments in photovoltaic power projects can have several advantages for industries, especially for mining firms, one of which is that they will not be at the mercy of the state-run Power Generation, Distribution and Transmission Company [Tavanir],” he said.
Moreover, 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.
Tavanir’s power deficit is increasing and manufacturing industries have to bore the brunt of the grave power supply crisis, as they are forced to halt operations repeatedly in June and July because the state-run utility company cannot produce sufficient electricity.
If industries do not invest in short-term power generation schemes, the scale and scope of their problems will increase exponentially.
To compensate for the shortage, industrial units have to turn off their machinery. Frequent power outages in big cities adversely affect industrial units, taking a toll on electrical equipment and reducing their efficiency.
Emphasizing the need for a bigger role for private companies in developing the key power industry, Mahmoud Kamani, managing director of Satba, said Iran's installed solar power generating capacity is about 450 MW and this initiative alone will add 100 megawatts to the output.
Diverse Climate
Iran has a diverse climate with vast windy lands and more than 300 sunny days a year, renewable power production is 980 MW, which is a meager share compared to the total of 90,000 MW.
With the ongoing projects, renewable output is expected to reach 1,100 MW by 2023.
Due to government funding constraints and economic pressures, private firms have taken the mantle of developing renewable energy.
Power generation from many types of renewables are 100% efficient in international energy statistics, while fossil power plants achieve only 25–85% efficiency.
Though the cost-competitiveness of technologies varies by country, the combined deployment of renewable energy and energy efficiency technologies always results in overall savings.
Kamani said renewables and energy efficiency can work together to provide over 90% of the mitigation needed in the energy system by 2050.
Energy efficiency and renewable energy investments can produce significant benefits, including lower fuel and electricity costs, increased grid reliability, better air quality and public health, and more job opportunities.
Any business, whether in the industrial or services sector, needs electricity supply to operate. Therefore, having the best energy solution is vital for reducing the fixed costs of economic activity.
New Business Model
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.
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.
“At present, there are 11 solar power stations in Yazd with a total capacity of 100 MW,” Abolfazl Asadi, the managing director of Yazd Regional Electricity Company, said.
Yazd has the highest solar power output in the country.
With 3,200 plus sunlight hours in a year, the ancient city is highly suitable for harnessing solar power as it is situated near oases where two deserts meet, namely Dasht-e Kavir and Dasht-e Lut, the latter known as one of the hottest places on earth.
One of Iran's top hub of textile production, Yazd is also famous for producing ceramics and construction materials.