Construction of new renewable power plants with 6,000 MW capacity on agenda

TEHRAN- The Deputy Minister of Energy and Head of the Renewable Energy and Energy Efficiency Organization (SATBA) announced the Ministry of Energy’s new plans to build 6,000 megawatts of new renewable power plants in the country and said: Alongside this process, creating a value chain and localizing the required equipment will also be pursued more vigorously. According to an IRNA report citing SATBA, Mohsen Tarztalab, explaining the organization’s latest measures in the field of developing new energy, described attracting non-governmental investment and strengthening the domestic supply chain as the two main wings for realizing the major goals of this sector, and outlined the details of SATBA’s new plans in three areas.

Referring to planning for the construction of 10,000 megawatts of household solar power plants in the country, he announced the publication of a call for participation by non-governmental sector investors in the construction of small-scale distributed solar power plants. Tarztalab stated: The financial model of these projects has been designed based on a combination of sources, including at least 40 percent investor equity, a maximum of 50 percent from National Development Fund resources, and at least 10 percent participation by electricity subscribers.

The Head of SATBA said: Investors who have a higher share in financing the project will be given priority in review, and the supply of equipment, installation, operation, and sale of generated electricity (with guaranteed repayment of principal and interest from the Green Energy Exchange) will be the responsibility of the investor. Tarztalab, referring to the implementation of the national program for developing solar power systems and the production chain, noted: In order to enhance technological capabilities and reduce dependence on abroad, SATBA has long placed the localization of equipment and the establishment of production lines for equipment needed by solar power plants on its agenda, and now that the Iranian market has good attractiveness for investors, this matter is being pursued more seriously.

In this regard, he announced a call to identify and support capable applicants for the construction, development, and upgrading of solar panel production lines and reminded: Accordingly, entities meeting technical and financial requirements will benefit from SATBA’s facilities and legal support. The Deputy Minister of Energy further announced the beginning of the maturity and payment of installments of National Development Fund facilities by investors and said: As projects progress, investors are obliged to settle the principal and interest of the allocated resources in accordance with the specified mechanisms.

He emphasized: After the end of the repayment period, ownership of solar power plants and other renewable power plants will be transferred to the investors. Tarztalab continued: The National Development Fund’s participation in the construction of renewable power plants is the first successful example of national investment that, ultimately, in addition to building power plants and solar electricity generation facilities, has led to empowering the private sector and the return of spent resources to the National Development Fund.

The Deputy Minister of Energy added: This successful example can be expanded to other areas needed by the country while also preserving the resources of the National Development Fund. MA