People, Environment

Cheap Fossil Fuels Stifle Renewable Plans

Cheap Fossil Fuels Stifle Renewable PlansCheap Fossil Fuels Stifle Renewable Plans

The affordability of fossil fuel and exorbitant costs of investment in renewable energy sources dissuade investors from financing clean energy alternatives in Iran, according to an energy official.

Azizollah Hajvali, CEO of Asalouyeh Power Generation Management Company in Bushehr Province, told ISNA that due to more economical alternatives that are available investors rarely consider clean energy opportunities.

“Cheap fossil fuel makes investment in thermal power a no-brainer, because it is economical,” and investment returns in the former quicker, he said.

On average, clean energy sources are responsible for generating about 15% of electricity demand in the developed world. The share of clean energy in global power generation on average is more than 22%, and it is expected to rise above 26% by 2020.

This is while renewable energy supplies less than 0.01% of Iran’s power demand.

“We’re trailing the world in this regard,” Hajvali lamented.

Tehran has pledged to cut its greenhouse gas emissions by 4% by 2030, which requires $17.5 billion in investment, mainly in clean energy sources.

The government’s conditional target is a 12% reduction in emissions, but meeting the ambitious goal is subject to $35 billion in international aid.

“The Energy Ministry has been making strides in boost investment in the clean energy sector,” the official said, without expounding on the specifics of what the ministry has done so far and intends to do in the future to attract investments.