TEHRAN- In order to develop renewable energy, enhance energy productivity, and support sustainable employment in rural areas, a joint cooperation memorandum was signed between the Renewable Energy and Energy Efficiency Organization (SATBA) and the Headquarters for the Development and Progress of 4040 Rural Clusters.

This memorandum was signed in line with the implementation of the general policies of the system and the provisions of the Seventh Development Plan law, aiming to maintain and attract the rural population, create local employment, strengthen the rural economy, and expand the use of clean and renewable energy nationwide.

Based on the terms of the memorandum, the parties committed to increasing renewable electricity generation capacity by up to 800 megawatts by constructing small-scale renewable power plants in the country's villages within the framework of SATBA's development models and by signing long-term guaranteed electricity purchase contracts with the private sector and people's cooperatives.

The duration of this memorandum is set for five years, and its extension or revision will be done by mutual agreement and based on laws.

According to the stipulated commitments, SATBA is obligated to support the private sector and people's cooperatives in constructing renewable power plants, undertake regional planning, introduce qualified contractors, provide technical standards, train operators, and exercise supreme supervision over the construction and operation of the power plants. Furthermore, SATBA is committed to signing 20-year guaranteed electricity purchase contracts, facilitating the connection of power plants to the grid, and making timely payments for invoices.

On the other hand, the Headquarters for the Development and Progress of 4040 Rural Clusters is tasked with creating coordination mechanisms among executive bodies, identifying local capacities, informing rural municipalities and cooperatives about the plans, and pursuing financing through agent banks to facilitate the implementation of renewable projects in the target areas.

The parties also emphasized conducting joint visits, developing executive bylaws, documenting actions, and forming national and provincial steering committees to follow up on the projects. Based on the signed memorandum, the joint action plan will be implemented in the first year in the provinces of Lorestan, Kohgiluyeh-Boyer Ahmad, Golestan, Khuzestan, South Khorasan, Kerman, West Azarbaijan, East Azarbaijan, Isfahan, and Hamedan.

On October 12, the executive secretary of Iran's 7th Solar Power Plants Conference stated that the development of solar power plants has accelerated and this trend will continue for the coming years. He predicted that the trend of interest in developing solar power plants will continue to accelerate over the next four years.

Mehdi Goodarzi noted that, in addition to major investors, the number of applicants for installing solar and renewable power plants is also increasing.

 He added that the development of these types of power plants gained more momentum last year due to the electricity imbalance and has continued this year in line with adopted policies.

He further stated that, given the country's approach to renewable development and the policies of the Seventh National Development Plan in this area, it was essential to examine the technical and economic dimensions of these power plants in the country. Therefore, the 7th Solar Power Plants Conference is being held, considering the role of renewable development in addressing the imbalance.

The Executive Secretary of Iran's 7th Solar Power Plants Conference recalled that since last year, with the advent of the 14th administration and the emergence of energy imbalance in the country, the development of renewables has received more attention than before with the aim of compensating for part of this imbalance. According to the latest statistics, the capacity of the country's renewable power plants has unprecedentedly increased to 2,550 megawatts.

Referring to the themes of the 7th Solar Power Plants Conference, he said that in economic discussions, various models of guaranteed electricity purchase, sales on the green board of the stock exchange, and the energy exchange will be examined. This is so that the path becomes transparent and clear for applicants, and they fully understand its costs and revenues.

SATBA had also signed a memorandum of understanding (MOU) with the Organization of Municipalities and Rural Administrations, on September 1, to develop small-scale renewable power plants of up to three megawatts in rural areas.

The MOU was signed by Masoud Nosrati, deputy interior minister and head of the municipalities organization, and Mohsen Tarztalab, deputy energy minister and head of SATBA. It aims to provide rural administrations, cooperatives, and unions with a framework to establish renewable power plants and sell electricity under long-term contracts.

Under the deal, SATBA will support projects through guaranteed power purchase agreements of up to 20 years, as well as alternative investment models including electricity sales on the Iran Energy Exchange and barter mechanisms.

SATBA will also introduce solar and wind potential maps to guide investors, coordinate with local power distribution companies to ensure grid connection, and provide a list of qualified contractors across provinces.

The municipalities organization will promote SATBA’s priority projects among local stakeholders, identify suitable sites for development, and encourage rural cooperatives and communities to invest in renewable generation. It will also help facilitate access to low-interest financing from partner banks.

The memorandum also covers oversight of project implementation, technical training for operators, and long-term management of renewable power plants in villages.

Meanwhile on September 10, the executor of the 3-megawatt solar power plant projects elaborated on the process of constructing these power plants in the country.

Mohammad Doust-Mohammadi, the executor of the 3-megawatt solar power plant projects, stated: "At the end of Bahman last year (February 2024), under the directive of the President regarding addressing the electricity supply-demand imbalance, a mission was assigned to construct 1,000 solar power plants with a capacity of 3 megawatts each. This initiative was placed on the agenda of the Ministry of Energy and the SATBA (Renewable Energy and Energy Efficiency Organization) group."

He added: "Overall, after six months, we are witnessing that these power plants, which were planned to facilitate grid connection, are gradually being connected to the national electricity grid.”

“Today, we see that 54 megawatts from these power plants are being connected to the grid in the provinces of Qom, Tehran, Semnan, Alborz, Markazi, Qazvin, and Isfahan”, he added.

The energy production of these power plants amounts to 268 kilowatt-hours, which is equivalent to saving 26 million cubic meters of liquid fuel used in thermal power plants, the official further announced.

In early July, the director of the engineering office of the Iranian Water and Power Resources Development Management Company referred to the government's policy of developing solar power plants in the country, and said: "Based on this, the construction of solar power plants next to dams has been put on the agenda."

Hassan Ahmadi added: "A memorandum of understanding was recently signed with the Renewable Energy and Energy Efficiency Organization (SATBA) to develop a solar power plant at the site of the dams that have been built, given the availability of ready land, the existence of the electricity grid, and other advantages."

Stating that within the framework of this memorandum, 500 megawatts of electricity can be produced in this way, he noted: "Given the country's capacity in terms of sunny hours, the development of solar power plants is a good source of electricity supply."

Meanwhile, Iranian energy minister has announced that three new packages, one conventional and two more technical models, will be unveiled for the construction of household solar power plants in the coming week.

Abbas Aliabadi said that according to plans, by the end of this year, about 3,800 megawatts will be added to the capacity of renewable power plants in the country, adding, “In the previous period, as a result of previous years, the capacity of our renewable power plants was about 1,200 megawatts, which has now exceeded 2,000 megawatts, which is a significant figure. God willing, by the end of this month, this number will reach about 3,000 megawatts, and by the end of the government, the goal is for this figure to reach 30,000 megawatts.”

The minister has said that the government fully supports private sector investment in renewable energy, as the country continues expanding its solar power infrastructure to address long-standing imbalances in the electricity sector.

As IRNA reported, the second international event titled ‘Developed Iran’ will be held with a focus on water, electricity, and renewable energies on November 5.

It will bring together Iranian knowledge-based companies, investors, and foreign ambassadors.

The main topics will include the expansion, renovation, and improvement of power plant efficiency based on national capacities, development of renewable energies and distributed generation infrastructure (small-scale power plants), improvement of efficiency in water extraction and consumption with a focus on reducing energy consumption, the sustainable use of unconventional water resources, including (high-salinity wastewater and sewage effluent), as well as the role of digital technologies such as artificial intelligence and the Internet of Things for energy optimization and management.

Attending the 29th meeting of the International Renewable Energy Agency (IRENA), Iran’s representative underlined the country’s commitment to the expansion of renewable energy sources via taking various measures.

These include growing solar and wind power production capacities and implementing strategies to improve energy efficiency across residential and industrial sectors, IRNA reported.

Iran plans to expand its renewable energy capacity to 7,000 megawatts by the next Iranian calendar year, which begins on March 21, 2026, up from current levels, Jafar Mohammadzadeh, an energy official said.

MA