As per the Cabinet directive issued in 2022, all state-run offices are obliged to generate 20% of their power via renewable energies, especially solar photovoltaic panels, as of June.
According to the Energy Ministry report, offices that fail to comply with the new rule will have to meet 20% of their electricity demand from the Energy Bourse, ISNA reported.
The expansion of rooftop photovoltaic power stations will help reduce the consumption of fossil fuels and curb environmental pollutants.
Each photovoltaic panel with a capacity of 1 kilowatt can generate 200 kW of power in a month.
Iran has all it needs to tap into clean energy but despite scientific studies and measures taken in this regard, the real potential has not been fully realized.
Only 1,000 megawatts of clean energy are produced in Iran, which obviously is very meager.
Iran is overly dependent on thermal power, as renewables account for hardly 1.2% of the total annual output of 90,000 MW.
“The government is determined to develop renewable energy,” Energy Minister Ali Akbar Mehrabian said.
The Renewable Energy and Energy Efficiency Organization (Satba) is tasked with preparing the ground for private sector investment in renewables and their export.
“The Energy Ministry is preparing a plan of action, based on which solar and wind power generated by private companies can be sold without state interference,” he added.
According to the minister, the production and export of green energy should be as competitive as possible, such that private investors are able to handle all operations without government intervention.
Subsidized Natural Gas
Providing thermal power stations with subsidized natural gas as feedstock is the main obstacle to the green sector’s development.
As long as gas-powered units run on cheap fuel, private firms will not be able to compete with them.
As per the law, the government buys electricity from large solar plants and small photovoltaic stations.
However, “with the new action plan, whose details will be announced soon, private companies can directly use the electricity they produce, sell it to others, or export it,” he said.
One of the reasons behind the plan is the government’s limited financial resources to continue payment of electricity subsidy and the other is the oft-mentioned government decision to downsize the sector and privatize.
In the past 10 years, the number of private companies active in the renewable sector – wind and solar – has shot up from three to over 500.
Mehrabian said private sector investment in renewable projects now exceeds $2 billion and Satba has been entrusted with devising regulations and establishing infrastructure for investors to generate and sell electricity to foreign buyers.
“The Energy Ministry will play a facilitative role and not intervene in the process of attracting buyers and determining prices. The government will also not benefit from the ventures and the investors will only be charged with land and transit tariffs," he added.
The minister noted that Iran enjoys enormous potential for the production of different kinds of renewable energies, including geothermal, solar and wind power.
"The private sector is the key to reach the goal … We welcome domestic and foreign players interested in participating in such ventures," he said.
Mehrabian said a lack of competition in the energy market largely dominated by the public sector has held back the renewable industry.
