Private sector to build 1,200 MW of solar capacity in seven provinces
Iran’s deputy energy minister announced the signing of a contract for the construction of 1,200 megawatts of solar power plants between the Renewable Energy and Energy Efficiency Organization (SATBA) and the private sector.
Mohsen Tarztalab said at the signing ceremony that efforts were underway to connect the plants to the grid before the start of next year’s peak consumption season. He added that the projects would be implemented in seven provinces: Tehran, Qom, Semnan, Isfahan, Alborz, Markazi, and Qazvin, ISNA reported.
The SATBA chief also announced the participation of the National Development Fund in financing solar projects, stressing that investors must provide part of the required capital in order to access the fund’s facilities.
He said easing access to financial resources was key to accelerating construction, noting that Loans from the National Development Fund will be allocated to the project and repaid by the project-executing entity through mechanisms established by the Fund.
According to the deputy minister, the project-executing company will be able to sell electricity generated by the solar plants through the Iran Energy Exchange or other designated markets.
Calling on private investors to join the initiative, Tarztalab underlined that, in cooperation with the National Development Fund, 50 percent of the financing for major projects would be provided by SATBA and the remaining 50 percent by the private sector.
The head of SATBA highlighted the continuous support of President Masoud Pezeshkian and the Energy Ministry for renewable energy expansion, expressing hope that with the signing of this contract and the completion of ongoing projects, the country’s renewable power capacity would reach 7,000 megawatts by the end of the year.
According to official figures published on June 1, Iran's nominal electricity generation capacity reached 94,649 megawatts by the end of the first months of the current Iranian calendar year (began on March 20, 2025), nearing the 95,000-megawatt threshold.
An imbalance has emerged over the past decade in the county, with power production and consumption growing at unequal rates. According to Energy Minister Abbas Aliabadi, "In the last 10 years, electricity production has increased 13-fold while consumption has risen 23-fold, leading to a grid imbalance."
The government had granted all administrative departments a deadline - effective June 21 - to supply part of their required electricity from solar energy.