TEHRAN- The capacity of Iran’s electricity generation from renewable sources will reach 5,000 megawatts (MW) by the end of the current Iranian calendar year (March 20). The country’s power generation from renewables has already exceeded 3,165 megawatts.

The country’s power generation from renewables has already exceeded 3,165 megawatts.

As Renewable Energy and Energy Efficiency Organization (SATBA) has announced, according to an approval by the Energy Supreme Council, the organizations should supply 40 percent of their required electricity through renewable sources.

The report says that the organizations previously should supply 20 percent of their required electricity through renewables, while according to the new approval of the Energy Supreme Council, the figure has increased to 40 percent.

On January 5, Energy Minister Abbas Aliabadi said: "The development of renewable energies and energy consumption optimization continues with the active participation of the private sector."

Making the remarks at the conference for the commencement of the executive operations of 1,269 megawatts of renewable power plants and electricity consumption optimization projects across the country, the minister said: "Currently, over a thousand locations across the country are under the implementation of various energy projects, and significant amounts of renewable energy have been connected to the grid up to this moment. We predict that these capacities will increase by the end of next year."

He further stated: "We have mobilized all capacities, and the process of supplying water and electricity is of special importance and is proceeding rapidly. Our goal is to reduce energy consumption and prevent uncontrolled and inefficient increases."

The energy minister also emphasized: "The focus of production is on renewable power plants and hybrid projects such as combined-cycle power plants, which are underway. These projects are managed using artificial intelligence and smart technologies."

Aliabadi stated: "All projects are executed by the private sector, which is our main strength, and we strive to minimize the use of state capacities."

Regarding the renewable energy market, the energy minister said: "The green market and the free market are active, and the energy consumption optimization market and the energy saving certificate issuance system have also been launched."

Also, the head of the Renewable Energy and Energy Efficiency Organization (SATBA) said: "Today, with the commissioning of new projects, the capacity of the country's renewable energies has exceeded 3,500 megawatts."

Mohsen Tarztalab, at the ceremony for commissioning 1,269 megawatts of renewable power plants and energy optimization projects and launching their executive operations, added: "Today, 1,269 megawatts of new capacity and the executive operations of energy optimization projects across the country are being commissioned."

He continued: "Today, 303 megawatts of new capacity will be added to the country's renewable power plants. With these projects, the capacity of the country's renewable power plants has surpassed 3,500 megawatts."

The deputy minister of energy noted: "These 303 projects will be commissioned in sixteen provinces of the country, some of which are in the 'generation in distribution' scheme."

Tarztalab stated that the development of renewables alone cannot resolve imbalances and emphasized the necessity of more serious attention to energy consumption optimization.

Also, referring to the organization's plans for developing wind power plants, he has said: “SATBA has a serious and extensive program for developing wind energy, especially in the eastern region of the country, and it is hoped that by the month of Dey next year (starts on December 22, 2026), a capacity of approximately 500 to 600 megawatts of installed wind power plants can be achieved in the country.”

Referring to the commencement of the executive operations of the 100-megawatt wind power plant by the MAPNA Group in the Mil-e Nader area, he continued: “The executive operations of this project officially began today [December 25]. It is hoped that a portion of the capacity of this 100-megawatt wind power plant by the MAPNA Group can be integrated into the grid for operation during the peak consumption period of the summer and assist the country's power grid.”

He added: “The MAPNA Group had previously built a 50-megawatt wind power plant in the Mil-e Nader area, and the current project, as the second phase with a capacity of 100 megawatts, is underway. According to the provided commitments, it was planned that a portion of this power plant would become operational by the peak of the summer next year.”

The head of SATBA stated that the investment for this project is approximately 60 million dollars and emphasized: This investment has been made entirely by the private sector, which highlights the important role of non-governmental investors in the development of the country's renewable energy.

Iran has increased its installed renewable and clean power generation capacity by 157 percent over the past year and a half, reflecting a steady expansion of wind and solar projects and a rising share of clean energy in the national grid.

Installed capacity rose to 3,165 megawatts by late November 2025, up from 1,230 megawatts at the start of the fourteenth government, according to data from the Renewable Energy and Energy Efficiency Organization (SATBA).

Markazi province ranked first in renewable capacity with 459.01 megawatts, followed by Isfahan with 394.94 megawatts and Yazd with 325.85 megawatts. Kerman, Qazvin, Razavi Khorasan and Semnan also recorded significant shares, reflecting favorable infrastructure, climate conditions and investor participation, SATBA said.

Qazvin led wind power development with 164.38 megawatts of installed capacity, making it Iran’s main hub for wind-generated electricity. East Azerbaijan ranked second with 52.65 megawatts, followed by Razavi Khorasan with 51.30 megawatts, underscoring the concentration of wind projects in high-wind regions.

SATBA said the geographic spread of renewable plants is gradually widening, with more provinces joining the sector. Wind energy, alongside other renewable technologies, is playing a growing role in diversifying Iran’s energy mix and improving grid stability.

More than 600 renewable project sites are currently under development nationwide and are scheduled to come online by late September 2026. Average green power transaction prices on Iran’s energy exchange stood at 51,518 rials per kilowatt hour in November 2025.

Measures introduced this year include calls for rial-denominated loans to build 50 to 1,000 kilowatt solar plants, finalization of mechanisms to transfer renewable equipment purchased with National Development Fund resources, and new rules allowing industrial, mining and agricultural units to build renewable plants at the distribution level.

Other steps include equipping 10 technical and vocational training centers to support renewable energy education and initial talks to supply renewable equipment through the commodities exchange.

SATBA said the added renewable capacity has so far saved an estimated 29 billion liters of water and 30 billion cubic meters of fuel, while preventing the emission of about 65 million tons of carbon dioxide.

As stated by the director-general of the Office for Coordination, Design, Measurement, and Validation of the SATBA, industrial estates can benefit from the advantages by participating in consumption optimization plans and receiving energy saving certificates.

Salar Atashpar, in an interview with an IRNA, referring to a plan recently implemented in Yazd city where industrial estates entered consumption management plans, said that the consumption management projects being implemented in Yazd and other areas are in line with consumption management optimization plans, which are carried out with private sector investment and within the framework of the energy optimization and environment market.

He continued: “In this plan, investors can implement the projects and receive energy saving certificates based on the savings achieved during the years when the return on investment and profit occurs.”

The SATBA official added that these certificates can be sold on the energy exchange on the relevant board, specifically the 'Energy Optimization Scheme Board,' allowing investors to benefit from them.

Atashpar emphasized that this approach covers the principal investment return and the associated risks, adding: “Among the most important projects defined or being defined in this market, which are highly significant for resolving issues during peak consumption periods, are plans for modifying cooling systems, including evaporative (water) coolers and gas coolers.”

He noted that these plans can play a significant role in achieving the anticipated goals, highlighting: “There is a program to achieve the necessary level of savings so that, alongside the development of renewables, we can resolve the related problems of energy supply during peak demand periods.

Solar generation capacity across Iran’s industrial parks has expanded sharply over the past year, rising from 23 megawatts to 400 megawatts as part of a broader plan to supply these zones entirely with renewable electricity, according to the head of the Small Industries and Industrial Parks Organization (ISIPO).

Reza Ansari, speaking on the sidelines of the power industry exhibition, in mid-November, said a major national effort to ensure stable energy supply for industrial zones has taken shape over the past year. Solar output in these areas, which stood at about 23 megawatts last year, has now climbed to 400 megawatts, signaling a significant leap in renewable capacity within the country’s industrial network.

He said Iran’s industrial parks and zones currently have a combined 5,100 megawatts of nominal stable power capacity, including small-scale combined heat and power (CHP) systems and solar units. Of this total, about 1,100 megawatts are operational, including roughly 400 megawatts of solar power and around 700 megawatts of CHP.

With electricity demand in industrial parks estimated at nearly 4,000 megawatts, Ansari said the long-term goal is to meet all consumption through solar power.

To support that target, the organization has signed an agreement with the Renewable Energy and Energy Efficiency Organization (SATBA) to build 500 megawatts of new solar plants inside or adjacent to industrial towns by the end of the year.

He said pilot projects are underway in three provinces. At Shamsabad Industrial Park, construction of a solar facility has already started, while in Khorasan Razavi, authorities have acquired a 1,000-hectare plot across from the province’s main industrial town to host one of Iran’s largest solar parks.

Ansari said rooftop solar installations for industrial units are also being phased in, alongside plans for a shared solar-energy town.

He said small and medium-sized enterprises lack the financial and institutional resources of large companies, which makes them more vulnerable to outages. Power cuts of two to three days a week raise production costs by around 10 percent, he said, adding that these increases feed directly into consumer inflation. Point-to-point inflation in the food and beverages sector is now above 60 percent, with higher electricity-linked costs acting as a contributing factor.

Ansari said Iran has more than 880 industrial parks and 50,000 active production units, many involved in food and beverage manufacturing. Any disruption to electricity supply in these zones directly affects prices of essential goods, he said, calling for a more protective approach to power management in the sector.

MA