(A) and registration permit:
Should registration be done only by private sector?
Investment should be done by the non-governmental section, hence in addition to
private companies, cooperatives, natural persons as well as civil partnership
groups may also apply.
Is it possible to transfer the construction permit of power plant to anyone
No way, not only it is strictly prohibited to transfer the construction permit,
it is also prohibited to transfer more than %25 of the share of the company
without approval of the Ministry of Energy.
How long is the validity of issued permit?
The permit is valid for maximum of 6 month, after which the validity will be
canceled due to lack of progress.
(B) and potential assessment:
May SATBA do the site selection for the applicants of wind and solar power
No, SATBA may not do the site selection for applicants. Therefore all the
technical responsibilities for the execution design of the power plant will be in
May SATBA provide us with technical instruction toward the site selection
especially for wind and solar?
Yes, the data collected from wind masts is available in the form of wind atlas
(available at the link of waves and wind office on the website of SATBA) and
Solar Atlas (available at the link of solar office) and other relevant
information (if available) is accessible and shows the approximate potential of
Is SATBA's wind masts data accessible?
Yes, applicants can visit the data on the website or refer to SATBA's waves and wind
office and receive the collected data from wind masts in certain places which have
already been installed by SATBA.
How is it possible to choose a site that does not overlap with other applicants'
After determining the coordinates of the site, applicants will propose the requested
land to SATBA in order to confirm the lack of overlapping with others.
Q: Can foreign investors apply for the
construction of renewable energy power plants directly?
A: Either through establishment of a formal
agency in Iran subject to renewable power purchase mentioned in articles of
association or jointly (with Iranian company) to register a company with Iranian nationality,
afterwards apply for the construction permit.
Facilities for investment:
Q: Is there any facilities such as bank
loans to be considered for the support of renewable power in order to construct
A: No facility as bank loans is allocated
for renewable power plants in advance, but the investors can directly apply to the
banks or financial institutions for attracting needed fund.
Q: Does SATBA have any special budget for
supporting construction of non-governmental power plants?
A: SATBA provides the financial sources for
the purchase of electricity generated from renewable power plants.
Q: Is it possible to use foreign exchange
A: yes, according to the relevant norms and
regulations, applicants can apply for.
Q: what are the conditions for introducing
the projects to use the National Development Fund?
A: A limited number of projects are
introduced to the National Development Fund annually and necessarily pursuant
to the conclusion of power purchase contract and foreign exchange contract for
constructing power plant between the contractor and the constructor.
How is the cost of investment for construction of renewable power plants?
The cost of investment differs depending on type of equipment and technology
utilizing in power plants and technology, but for the time being and on the
average the pertaining cost is estimated 1,000 US dollar for per KW.
Is the use of second-hand equipment approved in construction of power plants?
have you considered any incentives for local manufacture?
Yes, according to the Ministry of Energy Act issued in 2016, tariffs can be
increased up to maximum of 30% for power plants using local equipment technology.
How long is the guaranteed power purchase contract?
Corresponding to the Ministry of Energy Act, guaranteed Power purchase contract
is 20 year period and the tariff will be changed in the second 10 year of the
When is the PPA concluded?
After obtaining the construction permit, conclusion of the power purchase
contract will be proceeded, if the applicants obtain other permits such as
grid-connection permit, acquisition of land permit, and environmental permit.
Are the payments done timely?
Yes, it is mentioned in the context of the power purchase contract, in case of delinquency,
penalty accrues to the purchaser.
Is value added tax (VAT) considered in the payment?
No, at present, no legal deductions will be applicable to the financial
Is the payment in foreign exchange?
No, on the Economic Council basis and Ministry of Energy's Act, the power
purchase rate is calculated in Rials.
Is there any payment in advance?
No, there is no decision in this regard.
price of electricity:
How would you calculate and announce the next year's price of electricity generated from renewable sources?
In accordance with the change in expenditures, other relevant cases and also general
policies of the country.
Is the feasibility study for the construction of the power plant done/confirmed
No, SATBA does not have any interference in the feasibility study for the power
plants. The investor is responsible for all the technical and economic
considerations and just a copy of that will be submitted to SATBA in order to
complete the relevant file. In case of necessity, SATBA can suggest
recommendations or viewpoints in this regard.
Which companies can get help in performing the feasibility studies from?
All local and foreign consultants
Does SATBA provide the list of consultants?
Yes, at the moment there is a list of qualified consultants in SATBA.
How is the process of receiving the grid connection permit?
After completing the registration and issuing the construction license,
applicants can take the required steps to obtain the grid connection permit
based on the capacity of power plant through distribution companies, regional
electricity and/or TAVANIR. Recommendation will be issued as needed.
Do Renewable power plants need to receive the environmental permit?
Yes, receiving the environmental permit is necessary based on the diversity of the
type of power plants, technologies used, and also the power plants' seating (geographical
How is the process of receiving environmental permit?
After completing the registration and issuing the construction license,
applicants can take the required steps to obtain the needed permit through environment
office in the relevant province related to the location of the power plant. Recommendation
will be issued as needed.
of Land Permit:
How does SATBA cooperate as for land acquisition?
After completing the registration and issuing the construction license, the
required recommendations will be issued according to the power plant's layout design
and site plan for the use of the zones of the land affairs. But eventually the respective
rules and regulations of the land affairs will be determinative.
How much land is needed for the power plants?
For the solar power plants maximum of 2 hectares for per MW and for the wind farms,
only the turbines' installation location is considered point-wise.
Is the generated electricity from heat recovery in the industrial systems
considered as the guaranteed clean and renewable power purchase?
Yes, the electricity generated from heat recovery is considered as clean energy
and is available in the price list of power purchase.