Iran (IMNA) - The High Council of Economic Coordination, Iran's top economic policy body comprising heads of the three branches of government, authorized the allocation of these forex loans to the Energy Ministry for importing equipment necessary to establish new solar farms. The loans aim to facilitate the addition of approximately 7 gigawatts (GW) of new solar energy capacity in Iran. State and private banks will disburse the loans to importers of solar power plant equipment, with the Central Bank of Iran responsible for vetting applicants.
This initiative is part of the Iranian government's broader efforts to increase the share of renewable energy in the national electricity mix, addressing challenges posed by fuel shortages affecting thermal power plants. Earlier in January, the government announced that the banking system would provide up to $5 billion in easy loans over the next four years to renewable power plant developers, funded by the sovereign wealth fund.
Energy Minister Abbas Aliabadi noted on Saturday that Iran's solar power capacity has nearly doubled in the past seven months, although renewables currently account for only 1.8% of the country's total 94.5 GW power generation capacity.
This move aligns with Iran's ongoing strategy to boost renewable energy, including recent agreements with private investors to develop solar power plants and plans to expand solar capacity by 500 MW in 2025. The government aims to leverage Iran's significant solar potential, estimated at 60,000 MW, to reduce reliance on fossil fuels and enhance energy security.
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