TEHRAN- Iran’s Renewable Energy and Energy Efficiency Organization (known as SATBA) and Iran National Innovation Fund (INIF) signed a memorandum of understanding (MOU) for paying 3 trillion rials (about $6 million) of facilities to small-scale projects in the field of renewable energy.

The MOU was inked by SATBA Head Mahmoud Kamani and INIF Managing Director Mohammad-Sadeq Khayatian in a ceremony at the place of SATBA on Saturday.

Addressing the signing ceremony, the SATBA head said: “This memorandum aims to grant facilities to small-scale projects in the field of renewable energy, including green electricity supply contracts, industrial self-supply power plants, and renewable power plants in industrial and specialized solar towns in five years.”

Kamani added that maximum use of the legal capacities and facilities available in Iran National Innovation Fund, including the credits of Article 16 of the Law on the Jump in the Knowledge-Based Production and the resources of the Energy Consumption Optimization Account through the fund, along with the introduction of companies active in the field of renewable energy and electricity efficiency in order to issue the guarantee are some of the purposes of this memorandum.

According to this law, industries with electricity consumption of more than one megawatt are required to supply the equivalent of one percent of their annual electricity needs through the construction of renewable power plants, and this process is supposed to reach five percent within five years, the deputy energy minister further stated.

SATBA has also inked an MOU worth $5 billion for financing renewable power plant projects belonging to non-governmental public institutions with the National Development Fund (NDF) in mid-October.

The MOU was inked by NDF Deputy Head Alireza Mir-Mohammad Sadeqi and SATBA Head Mahmoud Kamani in a ceremony at the place of NDF on October 16.

Financing for the construction of renewable power plants up to a ceiling of five billion dollars (within two years) will be carried out by the National Development Fund, and includes the use of other methods for supplying resources based on the statutes and regulations of the NDF.

Addressing the signing ceremony, Kamani referred to concerns about future electricity supply shortages and the effectiveness of such plans, and said: “Network capacity, electricity generation, and power plant fuel supplies are limited. Therefore, the development of renewable power plants, in addition to promoting sustainable network development, can help overcome challenges in fuel supply and fossil fuel production.”

He added that the main issue with the electricity network is financing, and with the cooperation of the National Development Fund and foreign and domestic currency facilities, this problem can be solved.

In September, an official with the SATBA said that the development of renewable power plants in Iran has accelerated since the current government administration took office in August 2021.

According to Ali Shab-Navard, the Energy Ministry in the 13th government has defined new investment packages and strategies to attract more capital to fund new renewable projects across the country.

“Different investment models in the 13th government have been a good incentive for investing in this sector,” the official said.

The mentioned measures led to the capacity of the country’s renewable power plants reaching 1,085 megawatts, which is a very good figure, he added.

Back in July, SATBA Head Mahmoud Kamani said the capacity of renewable power plants is increasing regularly and daily in the country.

Photo: SATBA Head Mahmoud Kamani (R) and INIF Managing Director Mohammad-Sadeq Khayatian