TEHRAN – Iran has issued permits for 29,000 megawatts (MW) of solar power capacity, reflecting growing private sector interest in renewable energy. However, the Planning and Budget Organization and economic authorities must further facilitate investment conditions for private sector participation.

President Masoud Pezeshkian has emphasized the need to shift towards renewable energy to address Iran’s power imbalance. In a recent high-level meeting on power shortages, he stressed the urgency of accelerating solar and wind power plant construction by private investors.

“With the current electricity supply-demand gap, all relevant agencies must work together to ease the development of clean energy power plants by private investors,” Pezeshkian said.

He noted that investors have expressed readiness to develop 30,000 MW of solar and wind power capacity, requiring only permits and limited financial support from the government. “This meeting is aimed at removing obstacles for these investors so that projects can begin without delay,” he added.

Speaking at the “Clean Air Day” conference, Pezeshkian highlighted Iran’s high energy consumption, stating that the country uses three to four times more electricity and gas than European nations. He reiterated the government’s commitment to generating 30,000–50,000 MW of solar power in the coming years.

To expedite renewable energy projects, a government meeting in February gathered officials to assess progress on Iran’s goal of adding at least 30,000 MW of renewable power capacity.

“The key priority is achieving a power generation capacity that enables stable management of peak summer demand,” Pezeshkian said, proposing the formation of a consortium led by the Renewable Energy and Energy Efficiency Organization (SATBA) under the Energy Ministry. The consortium would include financial institutions and industry stakeholders to collectively procure solar panels at the lowest cost and highest quality.

“This approach will ensure the fastest implementation of projects with minimal expenses,” Pezeshkian added.

Following the president’s directive, government agencies have moved to simplify investment processes, including reducing the time required to obtain permits and secure land for projects.

Mohsen Tarztalab, deputy energy minister and head of SATBA, reaffirmed the government’s priority of allocating renewable energy development sites to private investors. “The government will not interfere in projects where the private sector is ready to invest,” he stated, urging provincial authorities and power distribution companies to cooperate in facilitating projects.

SATBA is working closely with private investors to ensure efficient project execution while keeping costs under control. “Given the high demand for renewable energy investments, we aim to allocate project capacities to interested investors,” Tarztalab said.

The Iranian government is closely monitoring the expansion of renewable power plants, with the president and energy minister reviewing progress on a weekly basis. Efforts are underway to expedite permit approvals wherever necessary.

According to Tarztalab, Iran has seen a 2.6% increase in renewable energy installation permits, with over 29,000 MW of solar power licenses issued this year. Previously, the country issued an average of 100 permits annually for renewable energy plants.

Tarztalab stressed the importance of utilizing domestic production for solar equipment. “We have planned to bring 3,500 MW of new solar capacity online before next year’s peak demand period, with contracts already signed. However, securing financial resources is crucial,” he said.

“We prioritize purchasing locally made solar panels and inverters, signing procurement contracts with domestic manufacturers,” he added. However, only 700 MW of the required solar equipment can currently be sourced domestically, necessitating imports to meet the 3,500 MW target.

Ahmadreza Tavakoli, head of the legal and contracts office at SATBA, stated that securing financing remains the biggest hurdle for renewable energy expansion. “We have introduced a foreign exchange and rial-based financing package to facilitate investment in the sector,” he noted.

“With this financial framework in place, we expect more investors to confidently enter this highly profitable market,” Tavakoli added.

Despite ongoing challenges, Iran has taken significant steps toward renewable energy expansion. However, sustained progress will require stronger cooperation between government agencies and the private sector.

Economic policymakers, particularly the Planning and Budget Organization, must play a more active role in removing investment barriers and ensuring that financial incentives are in place to support the rapid growth of Iran’s renewable energy sector.

EF/