Photo: Commissioner Miguel Arias Canete at the Iran-EU Business Forum on Sustainable Energy

SolarPower Europe present at the 1st Iran-EU Business Forum on Sustainable Energy

By Alexandre Roesch, Policy Director

Since the lifting of commercial sanctions, Iran has been looking at attracting new investments into its energy sector. The first Iran-EU Business Forum on Sustainable Energy which took place on 29 April provided a good opportunity to get a better understanding of the prospects for solar in that country. SolarPower Europe was present at the Forum to highlight the best practices to deploy solar energy in a cost-efficient manner.

Iran has set a target of 5 GW of renewable capacity to be developed between 2016 and 2020 in its 6th Development Plan, and a further 2.5 GW should come on stream between 2020 and 2030.

To get there, the national regulatory framework has been adjusted over the last years and mainly consists of technology-specific Feed-in-Tariffs granted via Power Purchase Agreements (PPA) over 20 years (with a 30% decrease of the tariff after the 10th year). Furthermore, the tariff is adjusted annually over the period of the PPA to account for inflation and the euro exchange rate in Iran. Finally, the tariffs can be increased by 30% for plants using locally produced components.

While several solar projects are currently under development, experience in applying this framework remains limited despite the huge solar potential of the country.

For more information, please contact j.watson@solarpowereurope