Iran to Add 500MW Solar Capacity by Year-End, Targets 4GW Expansion

  • Iran plans to add 500MW of solar power capacity by the end of the current Iranian year, as part of a broader initiative to expand its renewable energy infrastructure.
  • Iran’s existing solar capacity stands at 1,200MW, but the planned expansion could push that figure to between 3,000 and 4,000MW by next year

Iran plans to add 500MW of solar power capacity by the end of the current Iranian year, as part of a broader initiative to expand its renewable energy infrastructure by more than 4,000MW by next year, Energy Minister Abbas Aliabadi announced on December 20.

Iran receives more than 300 sunny days per year with solar radiation averaging 2,200 kilowatt-hours per square metre annually, making it one of the region’s most promising markets for solar energy development. More than two-thirds of the country’s territory receives enough sunlight to support utility-scale solar installations.

The country’s power grid, which generates approximately 350bn kWh annually, has the technical capacity to integrate up to 30,000MW of solar power, Aliabadi told state news agency Mehr.

‘We are working to realise this potential through private sector collaboration, creating an attractive investment environment and suitable market conditions for investors,’ the minister said, noting that contracts have been signed since the current administration took office.

Iran’s existing solar capacity stands at 1,200MW, but the planned expansion could push that figure to between 3,000 and 4,000MW by next year, marking a substantial increase in the country’s renewable energy portfolio.

Earlier on December 17, Iran’s “First Vice President” akin to a Prime Minister, Mohammad Reza Aref announced emergency plans to develop 30,000 MW of solar power in Isfahan province.

While water-rich countries like Germany have a daily water consumption of 140 litres per person, in Iran, this figure reaches 270 litres,’ Aref said, highlighting Isfahan’s relatively efficient consumption of 160 litres per day (lpd) as a potential model for other regions.

Earlier in 2023, the previous Raisi administration had drawn up a plan to produce 20,000 MW of renewable electricity by 2027 and 50,000 MW by 2031.

Deputy Energy Minister Mahmoud Kamani said that solar farms with a combined annual electricity output of 4,500 MW would join the national grid by the summer of 2024.

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