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Construction of Rural Solar Power Stations in Isfahan Gains Impetus

Each 5-kW PV power station costs at least $5,000, a major part of which will come in the form of low-interest loans to be repaid in installments within 10 years

To expand small-scale solar power stations in rural districts, operations are underway to link 690 rooftop photovoltaic power stations to the national power grid in Isfahan Province over the next 10 months, managing director of the Renewable Energy and Energy Efficiency Organization (Satba) said.

“This will be the largest small-scale solar power station project in Iran’s rural districts,” the Energy Ministry’s news portal also quoted Mahmoud Kamani as saying.

Each panel has a capacity of 5 kilowatts and upon completion, the initiative will add close to 3 megawatts to Iran’s installed green energy capacity at 1 gigawatt, he added.

According to Kamani, of the 690 small-scale solar power stations, 25 have become operational in Kashan County and added 125 kilowatts to the grid.

“Families were granted low-interest bank loans to purchase the panels,” he said. 

Commenting on the project’s benefits, he noted that in addition to expanding green energy, small-scale plants will generate income for deprived families as the Energy Ministry has guaranteed the purchase of solar powers.

The ministry is obliged to pay 11 cents for each kilowatt of power. Each 5-kW installation costs at least $5,000, a major part of which will come in the form of low-interest loans to be repaid in installments within 10 years.

According to the official, around 57 domestic firms are collaborating to supply equipment to build rooftop stations, including panels and inverters.

Iran is dependent on thermal power and renewables account for only 1,000 MW of the total annual output of 90,000 MW.

Visiting a 10 MW solar farm in Kashan, he noted that the implementation of the plan’s first phase will help generate 4 million kilowatt hours of power which, in turn, will reduce annual water and natural gas consumption in the region by 1 million cubic meters and 1.5 mcm respectively.

 

Curbing Pollutants

Expanding solar farms and rooftop photovoltaic power stations will help reduce the consumption of fossil fuels and curb environmental pollutants.

With more than 300 sunny days in a year, Iran has huge potentials to expand solar farms and attract investments.

Five government departments signed a memorandum of understanding last year to build 550,000 small-scale solar generators in rural and across Iran within five years.

According to the plan, each solar station will have a power production capacity of 5 kilowatts and the government guarantees to buy the electricity generated by solar farms at a fixed price of 22,000 rials ($0.07) per kilowatt hour.

The scheme will help empower low-income households in poor regions, especially those dependent on government benefits.

The five government departments contributing to the scheme are the Energy Ministry, the Vice Presidency for Rural Development, State Welfare Organization, Imam Khomeini Relief Committee and Construction Basij.

According to the program, 110,000 solar power plants will be built in the first year, which will generate permanent jobs and income in underprivileged regions.

Avoiding the use of fossil fuels, helping preserve the environment, saving water consumption, removing deprivation, supporting domestic construction, creating employment and developing clean energy are among the advantages of the program.

 

Global Average

Solar radiation in Iran is estimated to be about 1,800 to 2,200 kilowatt-hours per cubic meter annually, which is higher than the global average.

Studies show renewable investments in Iran are profitable. 

Therefore, the Energy Ministry plans to raise annual renewable energy output to 5,000 MW in four years with the participation of private companies.

Currently, 7,000 solar power stations are operating in the country. Renewables, including solar and wind sources, account for around 1% of the total electricity generation capacity of more than 90 GW in the country.

Renewable energy is the least expensive option for improving access to electricity, reducing air pollution and cutting CO2 emissions. It also contributes to sustainable socioeconomic growth, boosts global gross domestic product growth by 1%, employs close to 29 million people and generates a 15% increase in welfare, mainly through health benefits from reduced air pollution, based on a report by the International Renewable Energy Agency.

According to the Energy Ministry data, solar and wind account for 48% and 36% of the domestic renewable power production respectively. 

Small-scale hydroelectric plants, waste-to-energy plants and biomass factories constitute 13%, 2% and 1% of the total renewable output, respectively.