0430 GMT June 26, 2022
The call for tender launched on June 15 is in line with the Ministry of Energy’s plan to establish 10,000MW of renewable power capacity in the country, Press TV reported.
According to SATBA, 85 companies selected from a pool of 106 applicants were invited to participate in the tender. It followed cooperation agreements signed between governorates and SATBA to decide the sites for setting up renewable power plants in accordance with the needs of each region and province.
As a result, 152 construction sites in 30 provinces were identified and introduced to investors “in the form of 95 baskets” for the construction of power plants at a minimum capacity of 10MW and a maximum of 250MW, general manager of SATBA legal affairs office and contracts Ahmadreza Tavakkoli said.
"This is a good opportunity for investors to build solar power plants," he said.
In the tender, electricity purchase contracts are for 20 years and the return on investment for the construction of renewable power plants is six years, which can be reduced to four years, he added.
The renewable energy sector is booming in Iran. Despite being an energy superpower, the economy’s high reliance on oil has negatively affected Iran’s economic security and environmental sustainability. Coupled with facing the threat of climate change, Iranian policymakers have been compelled to prioritize environmental policy and utilize foreign investment and oil revenue to boost the country’s renewable energy sector.
Iran currently is producing less than one percent of its energy from renewable sources, where there are 900MW of power plants. The renewable energy sector comprises of mainly wind (310MW) and solar (390MW), with the rest related to hydropower and biomass.
Iran’s geography and climate are highly suitable for the various forms of renewable energy technology. According to studies, it is possible to supply 140,000 megawatts of electricity from renewables, including 100,000 megawatts from solar power plants and 40,000MW from wind power plants. But, the country has yet to reach the first milestone of 1000MW of installed renewables.
The administration of President Seyyed Ebrahim Raeisi has put a plan to build 10,000MW of renewable power plants on its agenda.