Iran in talks with Chinese firms to expand solar, energy storage projects

September 12, 2025 - 15:37

TEHRAN – Iran is negotiating with several Chinese companies to develop solar power plants and battery energy storage systems (BESS) as part of efforts to boost renewable capacity, a senior official at the Iran Power Generation, Transmission and Distribution Company (Tavanir) said.

Mohammad Allahdad, Tavani’s deputy for transmission and foreign trade, told IRNA that Chinese firms were chosen because they are global leaders in solar panel installation and storage systems.

“With Iran moving toward expanding solar power plants, given the country’s high number of sunny days, we must use storage systems to increase efficiency,” he said. “Solar plants can only generate during the day, but with these systems, their electricity can be used at night.”

Allahdad said talks were held with two major Chinese companies active in solar energy. He noted that China operates the world’s largest fleet of solar power plants, many of which are paired with storage systems.

The official added that Chinese companies also have strong expertise in pumped-storage hydropower plants and have previously partnered with Iranian firms in dam construction. He said the talks included provisions for transferring technical know-how on storage systems to Iranian companies alongside joint solar development.

According to Allahdad, this cooperation would both advance Iran’s solar expansion plans and localize storage technology.

The International Energy Agency (IEA) has projected that rapid growth in solar and wind generation pushed renewables beyond 4,000 terawatt-hours in 2024, and output is set to exceed 6,000 TWh by 2026. Renewables are expected to supply over 90 percent of the increase in global electricity demand through 2026, supported by rising hydropower production.

The IEA said demand growth, forecast at 3.3 percent in 2025 and 3.7 percent in 2026, will outpace the 2015–2023 average, driven by industrial consumption, higher household appliance use, growing reliance on air conditioning, electrification of heating and transport, and expansion of data centers.

EF/MA

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