Private companies invested 100 trillion rials ($2.38 billion) in the renewable power industry over the past two years, said the head of Renewable Energy and Energy Efficiency Organization, also known as Satba. “The Energy Ministry changed its approach to renewables in 2016 due largely to financial constraints and private investors came on the scene,” Mohammad Sadeqzadeh told ISNA.
Sadeqzadeh, who also is a deputy energy minister, added that 3,000 people work at 500 Iranian companies active in the renewable sector. Renewable power plants not only environment-friendly but also create much-needed jobs, he noted.
Sadeqzadeh expressed optimism over the future of renewable power production, which presently stands at 600 megawatts. This volume, he said, would reach 1,000 MW by the end of the current fiscal (March 2019). The industry registered a progress rate of 40% in the last fiscal and is now about 60% compared to the corresponding period last year.
“Over 20,000 MW of electricity is consumed only for cooling systems. This volume should be generated by the renewable sector to guarantee uninterrupted supply in summer.”
He stressed that as the cost of renewable energy is declining rapidly, the industry’s target of meeting 5% of domestic power demand is expected to be raised to 10%.
Underscoring that wind energy is more difficult to develop compared to photovoltaic energy, he said the wind sector requires long-term investment and complex infrastructure.
“While solar power plants normally take six months to be completed, wind stations need five years for feasibility studies and project implementation,” Sadeqzadeh said.
The Energy Ministry says it has plans for 1,000 MW of renewable capacity a year through 2022 with the help of the private sector. Iran has a diverse climate of vast windy lands and more than 300 sunny days a year, which makes it ideal to tap into wind and solar energy.
