TEHRAN- As announced by the deputy head of Iran’s Renewable Energy and Energy Efficiency Organization (SATBA) for investment and development, renewable power plants with capacity of 2,878 megawatts (MW) are simultaneously under construction in 26 provinces of the country.

According to a report by IRNA from the Energy Ministry, Jafar Mohammadnejad Sigaroudi said that it is anticipated that these power plants will start operation by late April.

Mentioning the process of clean energy development in the country, the official said that renewable energy capacity has grown three-four folds to over 4,200 MW by late February. 
On February 22, Mehdi Hosseini, director general for planning in SATBA, said that Iran’s renewable power capacity has risen sharply, with solar installations expanding more than fivefold and total renewable capacity reaching 4,162 megawatts.

The official stated that renewable capacity under the current administration has increased by around 2.5 times compared with all previous periods combined.

He described renewable development as a key priority amid persistent electricity shortages affecting both industrial and household consumers.

Hosseini said substantial financial resources have been injected from the National Development Fund of Iran, and that a new financing model approved by the Economy Council in August shifted from loan-based funding to joint investment with the private sector.

Under current plans, renewable capacity is targeted to reach 11,000 MW by the end of the next summer peak season, with the longer-term objective of achieving 12,000 MW under the Seventh National Development Plan expected to be met by the end of next year (March 2027).

He said renewable expansion, alongside efficiency improvements and integration with thermal power plants, could help reduce the country’s electricity imbalance.

To stimulate demand in the green power market, Hosseini pointed to government and Supreme Energy Council resolutions requiring industries to source 20 percent of their electricity from renewables starting in 1407 (March 2028), while government buildings must secure 40 percent of their electricity from renewable sources or through the green energy exchange.

He added that enabling household participation in the green exchange, expanding renewables in industrial parks and introducing capacity certificates are among measures under way to accelerate deployment.

Hosseini described solar power plants as the lowest-risk renewable investment option, citing their independence from fuel supply uncertainties that affect gas-fired plants.

He also said the potential launch of a carbon market or access to international carbon revenue streams could raise internal rates of return for renewable projects by five percent to 10 percent, further enhancing investment appeal.

On January 30, the state media reported that more than 22 megawatts of solar power capacity was connected to Iran’s national electricity grid across six provinces over the past three months, reflecting the continued expansion of renewable energy projects.

A total of 10 solar power plants became operational during the months of Aban, Azar and Dey, with projects coming online in Isfahan, Khorasan, Hamedan, Markazi, Zanjan and Fars provinces, according to data from the Renewable Energy and Energy Efficiency Organization (SATBA).

Several plants with capacities ranging from 100 kilowatts to two megawatts were connected under guaranteed power purchase schemes or through the green electricity board of the Iran Energy Exchange.

Larger projects included the first phase of a 10-megawatt solar plant in Fars province and a three-megawatt facility in Zanjan.

SATBA said the sealing of power plant meters, the final step before commercial operation, has accelerated in recent months following faster project implementation and grid connection procedures.

Under Energy Ministry regulations, meter sealing is carried out after technical inspections are completed, allowing electricity generation to be formally recorded for monitoring and financial settlement.

On January 27, a deputy energy minister had said that Iran plans to raise its renewable power generation capacity to more than 5,200 megawatts by the end of the current Iranian year (March 20), citing faster permitting and improved financing as key to meeting the target.

Mohsen Tarztalab said capacity additions have accelerated, but delays in administrative procedures at the Energy Ministry and grid management have slowed the full integration of new plants.
Of the roughly 3,700 megawatts of renewable capacity installed so far, about 3,400 megawatts are currently feeding into the national grid, he said, adding that around 870 megawatts of installed capacity is not yet fully visible in official grid figures.

Meetings have been held with grid operators to speed up coordination, Tarztalab said, noting that the gap between announced capacity and what is operational needs to be closed.

Iran has announced plans to reach 5,200 megawatts of renewable capacity by year-end, but under directives from the energy minister and the president, authorities are seeking to raise the figure further by late February, he added.

Around 1,000 megawatts of clean power capacity is expected to be added in February alone, though achieving that goal will require closer cooperation among relevant agencies.

Tarztalab, who also heads the Renewable Energy and Energy Efficiency Organization (SATBA), said adequate financing could significantly accelerate project execution.

Renewable capacity is forecast to reach 11,000 megawatts by the end of summer, representing growth of three- to seven-fold compared with previous periods, he said.

He added that private sector developers are facing challenges in securing foreign currency, warning that greater support in this area would be critical to meeting targets.

Tarztalab said permits for inactive renewable power projects are being revoked, with priority given to active investors. Licenses that have seen no progress for more than six months are being cancelled and reassigned, he said, noting that more than 115,000 megawatts of permits have been issued nationwide, leaving little unused capacity in many provinces.

SATBA also plans to introduce artificial intelligence across its operations, including permitting, investor services and project monitoring. Over the past two to three months, 40 AI-related proposals have been submitted, with 10 unveiled so far, he said.

Electronic government services are being expanded to allow investors to complete procedures online, with pilot programs launched in several provinces from Feb. 11. The system will gradually move toward full digitalization and wider use of AI, Tarztalab said.

He called on the Industry Ministry and the central bank to step up cooperation to accelerate order registration, equipment procurement and financing.

MA