Iran has set up an aggressive growth plan to boost green energies as a key sustainability factor as part of the economic diversification goal under its sixth five-year economic development plan (2016-21), according to the US-based research firm Frost & Sullivan.
The environmental and economic sustainability issues in Iran’s Economy Mission 2025 have led to incentive plans to attract the private sector to upgrade obsolete power technologies and develop renewable and biomass energies across the country, the firm was cited by Trade Arabia.
Based on Iran’s energy roadmap, the government plans to embrace green technologies to increase nominal capacity of power plants from 74 gigawatts to over 120 GW by the end of 2025.
Ali Mirmohammad, senior consultant and business development manager at Frost & Sullivan, said the electricity market in Iran grew at a compound annual growth rate of 6.5% over the past 10 years, which is far beyond its gross domestic product growth rate and currently not more than 3%.
“Iran has witnessed the emergence of new players in the manufacturing and agricultural sectors. Additionally, every year, almost 1.4 million new consumers are added to the electricity market. These developments require an additional capacity of 5,000 megawatts for each year and new investments in the distribution and transmission networks,” he said.
Poor efficiency in the power generation and transmission infrastructures results in a huge loss to the economy (over $200 million per 1% loss during transmission) that needs to be urgently addressed through new investments.
“Installing new generation high-efficiency turbines, design and construction of new substations, construction of high-voltage transmission lines as well as adoption of renewable and green technologies into the energy mix are major plans to be implemented by the Iranian government in the post-sanctions era," he said.
Mirmohammed added that biomass from rural waste is the other key investment opportunity in Iran.
The target is to generate over 5,000 MW of renewable energies, which include 4,500 MW of wind power and 500 MW of solar power. Currently, the potential for generating over 15 GW of wind energy in areas such as Manjil, Zahedan, Zabol and Nishabour has been recognized by the Renewable Energy Organization of Iran.
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