Based on the new regulations, the ministry has increased the price for the guaranteed purchase of electricity from renewable power plants in order to promote construction of such plants in the country and also to increase competitiveness among the companies active in the renewable electricity industry.

According to Iran’s Renewable Energy and Energy Efficiency Organization (known as SATBA), to address environmental problems in coastal provinces and metropolises, the base rate of guaranteed electricity purchases from biomass power plants will be doubled.

Also, the electricity purchase rate for wind farms in Sistan-Baluchestan province in southeastern Iran will increase by ten percent compared to the figures set out in their contracts.

Furthermore, renewable power plants which are built to export their generated electricity can, on request, sell their electricity to SATBA in accordance with Article 61 of the Consumer Pattern Amendment Act; which in that case they are required to cancel their export licenses.

Also for power plants that are not fully operational, the time for the price adjustment will be based from the date on which the plants start operating in full capacity.

According to the official the capacity of power generation from the renewable sources will exceed 1000MW by the end of the current Iranian year (March 19, 2020).

Renewables, including hydropower, account for just six percent of the country’s total energy generation, versus natural gas’ 90 percent share.

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Speaking at a press conference on Sunday, Mohammad Sadeqzadeh, director of Iran’s Renewable Energy and Electrical Energy Efficiency Organization, a subsidiary of the Energy Ministry, said people and the private sector have made huge investment in the renewable energy industry in recent years.

Even the “cruel sanctions” could not slow down the growth of the renewable energy industry in Iran, he said, adding that local investment has now outstripped foreign investment in this sector.

“At present, one large-scale renewable energy plant and tens of small-scale ones are coming into operation every week,” Sadeqzadeh went on to say.

Iran is seeking 5,000 megawatts of renewable energy by 2020, with more than 4,000 megawatts expected to come from wind power. The country has approximately 141 megawatts of installed wind power.

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