Iranian Energy Minister Hamid Chitchian recently shared exciting plans with renewable energy experts and representatives at the Iranian Embassy in Delhi on the 8th. He revealed that Iran is set to significantly boost its renewable energy sector, aiming to reach a combined 5 GW of solar and wind power capacity by 2018. This move marks a major shift toward cleaner, more sustainable energy sources.
Iran’s ambassador to Germany, Ali Reza Sheikh Attar, highlighted progress since the initiative began in January. Over 400 MW of solar projects have already been launched, and the total signed contracts for renewable energy projects now exceed 900 MW. This reflects strong momentum and growing confidence in the sector.
Currently, Iran’s national grid produces around 70 GW of electricity. With an expanding economy and rising consumer demand—especially given the low electricity tariff of just $0.02 per kWh—the country is expected to face an annual increase in electricity demand of about 5 GW. To meet this growing need, renewable sources like wind and solar are becoming increasingly important.
Wind power has now entered the scene, complementing Iran’s traditional reliance on large hydropower plants. Solar energy is also gaining traction, and the country’s current renewable energy capacity has reached 11 GW. This shows a clear trend toward diversification and sustainability.
To support this transition, Minister Chitchian introduced a five-year Feed-in Tariff (FIT) subsidy policy starting in 2014. The government offers a subsidy 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.
Some delegates also emphasized the potential for a more decentralized power system in Iran. They suggested developing a grid that is more supportive of renewable energy, avoiding large centralized coal-fired power plants that often hinder green energy growth in other nations. This approach could lead to a more resilient and environmentally friendly energy future for Iran.
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