TEHRAN- The Iranian Energy Ministry offers incentives to companies that will make investment in the generation of electricity from clean energy resources in the country, Energy Minister Hamid Chitchian told the Tehran Times in a press conference on Saturday.

“The incentive, which is the long-term purchase of the generated electricity, is granted to both Iranian and foreign companies. For those companies which will use Iranian manufactured equipment in their projects the guaranteed price will be increased by 35 percent,” the minister noted.

In mid January, Deputy Energy Minister Houshang Falahatian said contracts to set up solar and wind power plants, generating 1000 megawatts (MW) of electricity, will be concluded by March 19, 2016 which marks the end of current Iranian calendar year.

According to Falahatian, the contracts are mostly negotiated with Iranian companies, among others.

In the course of next ten years, Falahatian said, Iran aims to generate as much as 50,000 MW of electricity, ten percent of which is slated to be generated from renewable sources. 

To meet the target, he said, 50 new power plants are planned to be constructed. 

He put the current total electricity generation capacity of solar and wind power plants at 250 MW, saying this figure would increase 20-fold over the next ten years. 

Officials say the country has the potentiality to generate 40,000 MW of electricity from solar and wind resources. 

*** ‘Sanctions removal creates a new era for energy sector’

Elsewhere in his remarks, Chitchian said the removal of sanctions will create a new era for the Iranian energy sector.

“We were deprived of direct foreign investment during the past ten years. Now that the sanctions are being lifted against the country, many foreign companies are coming and announcing their readiness to make direct investment in different parts of Iran’s energy sector such as in the construction of power plants or establishment of wastewater treatment networks,” the minister added.

He mentioned Russia, France, Italy, Britain, Japan, China and South Korea as some of the countries that are suggesting finance and implementation of Iranian energy projects.

The lifting of sanctions will also facilitate exports of Iran’s technical and engineering services in addition to equipments in the field of energy and also electricity, the official stated.

The other advantage of sanctions removal is the technology Iran can obtain from foreign sources, Chitchian said, adding: “For example, we did not have the technology to manufacture F-Class turbines with high efficiency, while by the lifting of sanctions, Germany and Italy have announced readiness to transfer related technology to Iran.”

Foreign companies have also declared preparedness to transfer technology to Iran in the fields of water and wastewater treatment plants as well as electricity generation and transmission, the minister stated.

Sanctions removal will also provide more opportunities for the participation of Iranian companies in the international tenders, he added.

*** ‘Energy projects worth $1.557b planned’

Chitchian pointed out to the projects which are due to be launched on the occasion of the Ten-Day Dawn (February 1-11, marking the anniversary of the Islamic Revolution of Iran), saying that the ministry plans to start and inaugurate projects worth 56.3 trillion rials (about $1.557) in the country during the Ten-Day Dawn.

The minister mentioned construction of combined-cycle power plants, establishment of electricity transmission networks, building of dams, establishment of irrigation and drainage networks besides water transmission networks and wastewater networks as the projects to be started or put into operation during the mentioned time.

*** ‘Private sector to finance development projects’

The private sector accounts for financing some of these projects, the minister stated. One of the main policies of the government is to transfer the financing of some development projects to the private sector, he added.

Most of the power plants currently under construction are being financed by the private sector, he noted.

“We have also transferred financing of 97 water and wastewaters projects worth 44.8 trillion rials (about $1.239 billion) to the private sector. It is while the government’s budget allocated to water and wastewater sector is just 15 trillion rials (about $414.937 million),” Chitchian stated.

*** ‘Just 62% of electricity generation capacity in use’

Chitchian further noted that just 62 percent of electricity generation capacity is used in Iran, while the figure has risen up to 80 percent in some countries.

“They could make it through changing the times of electricity consumption in their countries. And it is what we have started since the last year,” the minister explained.

By having an electricity generation capacity of 68.38 gigawatts, Iran tops countries in the Middle East and North Africa in this regard. 

Currently, Iran exports electricity to Turkey, Armenia, Turkmenistan, Azerbaijan, Pakistan, Afghanistan and Iraq