TEHRAN – Based on the national budget bill for the next Iranian calendar year (starts on March 21, 2022), the Energy Ministry is allowed to use a portion of the revenues collected from the electricity bills for the development of the renewable energy sector, IRNA reported.

As reported, according to the budget bill, 10 percent of the total electricity revenues is going to be transferred to a bank account owned by the Power Generation, Distribution, and Transmission Company (known as Tavanir) of which 20 percent will be used for developing electricity network in rural areas, and the other 80 percent will be allocated for the development of renewable energy industry.

Iran's Renewable Energy and Energy Efficiency Organization (SATBA) is going to be in charge of the mentioned budget and will determine the areas in which the money will be spent on.

President Ebrahim Raisi submitted the administration’s draft of the national budget bill for the next Iranian calendar year 1401 to the Majlis on Sunday.

Renewables, including hydropower, account for about seven percent of Iran’s total power generation, versus natural gas’ 90 percent share.

Based on Iran’s Sixth Five-Year National Development Plan (2016-2021), the country was aiming for 5,000 megawatts (MW) increase in renewable capacity to meet growing domestic demand and expand its presence in the regional electricity market.

But in the final year of the plan, only one-fifth of the figure has been achieved.

Iran was supposed to become a regional hub in the field of energy in the past Iranian calendar decade (March 2011-March 2021), but evidence shows that the country is facing a shortage even in the supply of electricity inside the country, an issue that many believe that could be achieved by developing renewable energy and increasing efficiency of the thermal power plants.

EF/MA