Iranian Energy Minister Hamid Chitchian recently addressed a group of Iranian renewable energy experts and representatives at the Iranian Embassy in Delhi, announcing that Iran is committed to significantly expanding its renewable energy sector. By 2018, the country aims to increase its photovoltaic and wind power generation capacity to 5 GW. This ambitious goal reflects a growing focus on sustainable energy solutions as part of Iran’s broader energy strategy.
During the event, Iran's Ambassador to Germany, Ali Reza Sheikh Attar, highlighted the progress made since the initiative was launched in January this year. Over 400 MW of solar energy projects have already broken ground, and the total volume of signed renewable energy contracts has reached 900 MW. These figures demonstrate the momentum behind Iran’s renewable push.
Currently, Iran's national grid generates approximately 70 GW of electricity. With continued economic growth and rising energy consumption—especially given the high electricity tariff rate of around $0.02 per kWh—annual new electricity demand is expected to reach 5 GW. This increasing demand underscores the urgency for diversifying energy sources.
While hydropower has traditionally dominated Iran’s renewable energy landscape, wind power is now gaining traction. Solar energy is also seen as a highly promising sector. To date, Iran's renewable energy production capacity has reached 11 GW, signaling a strong foundation for future expansion.
To support this transition, Energy Minister Chitchian introduced a five-year Feed-in Tariff (FIT) subsidy policy starting in 2014. The government offers subsidies of 4,442 lire ($0.15) per kilowatt-hour for renewable energy projects. Additionally, residential users who install photovoltaic systems receive half the maximum installation cost as a subsidy, making clean energy more accessible to households.
Some delegates also emphasized the potential for a more decentralized power system in Iran. They suggested that developing a renewable-friendly grid could help avoid the pitfalls associated with large-scale centralized coal-fired plants, which often hinder the integration of clean energy in other countries. By focusing on decentralization, Iran could pave the way for a more sustainable and resilient energy future.
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