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Iran is facing electricity shortages due to increased consumption during the cold season, leading to fuel supply constraints for power plants. To address this issue, the country’s Renewable Energy and Energy Efficiency Organization (SATBA) has invited investors to participate in the construction of renewable energy power plants. This is part of the government’s short- and medium-term plans to address the electricity imbalance.
To facilitate investments and resolve challenges facing renewable energy developers, SATBA has implemented measures under the revised Regulations to Remove Barriers to Renewable Energy Production. These measures were approved in December 2024. The organization has also secured financing for renewable projects through existing credit lines or loans supported by the National Development Fund.
Interested investors are requested to submit relevant documentation for evaluation and qualification. SATBA has assured that it will expedite necessary reviews and final negotiations for contracts. The organization will also issue preliminary approvals or referral letters for qualified applicants to access financing from banks.
Iran’s Energy Ministry has emphasized timely maintenance of power plants and encouraged public participation in energy-saving initiatives to mitigate the electricity shortage issue. Incentives for low-consumption users and penalties for excessive usage are among the measures being implemented.
According to Ali Shabnavard, the director general of SATBA’s Office for Supervision of Construction and Production of Power Plants, the capacity of renewable power plants in the country is expected to increase by 500 MW by the end of the current Iranian calendar year. This will bring the current nominal capacity of the country’s renewables to 1,371 MW. Last week alone, 53 MW was added to the capacity of the country’s renewable power plants.
This move by SATBA is expected to address the electricity imbalance and reduce the strain on the country’s power grid. It will also contribute to the government’s efforts to promote renewable energy and reduce reliance on fossil fuels. Overall, this initiative is a positive step towards sustainable energy production in Iran.