Dr. Sadeghzadeh, Deputy Minister of Energy and Head of SATBA attended a press conference on November 3rd 2019 and responded to press group’s questions on the sidelines 19th Iran International Electricity Exhibition. He then outlined the barriers to renewable electricity exports during the closing ceremony of the exhibition, presenting a panel on electricity exports.
Based on public relations and international affairs of SATBA, at the beginning of the meeting, Dr. Sadeghzadeh mentioned that the average annual growth rate of renewable power plants has reached more than 30% in the past three years. He mentioned: “Despite the low cost of electricity sales that could overshadow investment in the electricity industry its infrastructure and development, the annual growth rate of renewable power plants in the country reflects a strong determination by the private sector, the Islamic Consultative Assembly and the government to develop the capacity of renewable and clean power plants in the country.
He added: "There are several renewable energy equipment that we have at least two producers for each, therefore, the private sector is taking appropriate action in this field and if the government and the Islamic Consultative Assembly address the economic problems of the electricity industry, secure and sustainable investment will be made for the country's future generations.
He answered one of the reporter’s questions regarding the process of development of incineration power plants after the announcement of the new decree of the renewable electricity purchase guarantees: “In the recent approval of the Ministry of Energy biomass power plants have drawn more attention, therefore, the base rate of guaranteed electricity purchase of this type of power plant has been increase by 50% compared to the previous decree.
In line with this, the proposal of the Ministry of Energy and the approval of the Cabinet of Ministers devoted to the electricity generation from waste in megacities has also been submitted to the Majlis.
Under the act, the necessary funds are specifically reserved for paying electricity bills under the name of "waste-to-electricity generation charge" that will be complemented by the recent approval of the Ministry of Energy. He added: "With the announcement of this law, there will be a serious impetus for the electricity generation from biomass power plants, especially in the coastal provinces and megacities.”
He mentioned that currently the total capacity of renewable power plants in Iran is 841 MW out of which 6 biomass power plants with the total capacity of 11 MW exist.
He added: "The total potential of the country in constructing biomass power plants is about 800 MW and it is anticipated that at least 400 MW of this capacity will be operational in megacities and coastal provinces with the recent ratification of the proposal."
In response to the question related to localized technology he said that: "We have come to the point that we have almost all the technology for the last 3 years and at least 2 generators for each equipment. By increasing competition between them and increasing the quality of production equipment, the share of these localized technologies for renewable power plants will increase.”
Referring to SATBA’s plans to support local construction and currency savings he mentioned: “Renewable power plants that use localized equipment will have an incentive factor in the guaranteed electricity purchase rate and depending on the technology's localization rate, their electricity purchase rate will increase by 30% over the base rate.”
Referring to the launch of solar rooftops by people on their houses, he mentioned: "The establishment of solar rooftops has entered its three-year experience and in this process electricity distribution companies across the country have been cooperating as representatives of SATBA.”
Dr. Sadeghzadeh announced the construction 3500 units of power plants with a capacity of 35000 kW and said that the electricity bills of these plants will be announced every two months and will be paid by SATBA. It is anticipated that the number of these power plants will be 5000 units till March 2020.
He said that the government could not contribute to financing renewable power plants that are being built to sell electricity under the guaranteed purchase act. In this regard, private banks, organizations such as specialized basij and Imam Khomeini Relief Foundation in the deprived areas have received financial support.
He reiterated at the closing ceremony of the 19th Iran International Electricity Exhibition that renewable energy development in Iran was initially carried out by the private sector. The government has assigned this responsibility to the people and private sector.
He pointed out that Iran has a good potential for renewable energy development. According to calculations, levelized cost of electricity in Iran is in a way that the construction of renewable power plants with the aim of exporting to neighboring countries where electricity prices are far higher than Iran, makes it more attractive.
At the end of the meeting, he referred to the Minister of Energy's announcement on electricity exports and suggested: "In order to build trust for the private sector, a working group could be formed between SATBA and the private sector to examine the obstacles to renewable electricity exports."