Worksheet (A) and registration permit:

Q: Should registration be done only by private sector?

A: 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.

Q: Is it possible to transfer the construction permit of power plant to anyone else?

A: 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.

Q: How long is the validity of issued permit?

A: The permit is valid for maximum of 6 month, after which the validity will be canceled due to lack of progress.

Worksheet (B) and potential assessment:

Q: May SATBA do the site selection for the applicants of wind and solar power plants?

A: 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 applicant's charge.

Q: May SATBA provide us with technical instruction toward the site selection especially for wind and solar?

A: 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 the regions.

Q: Is SATBA's wind masts data accessible?

A: 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.

Q: How is it possible to choose a site that does not overlap with other applicants' choice?

A: 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.

Foreign investment:

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 power plants?

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 reserves?

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.

Cost of investment:

Q: How is the cost of investment for construction of renewable power plants?

A: 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.

Q: Is the use of second-hand equipment approved in construction of power plants?

A: No.

Q: have you considered any incentives for local manufacture?

A: 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.


Q: How long is the guaranteed power purchase contract?

A: 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 contract.

Q: When is the PPA concluded?

A: 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.


Q: Are the payments done timely?

A: Yes, it is mentioned in the context of the power purchase contract, in case of delinquency, penalty accrues to the purchaser.

Q: Is value added tax (VAT) considered in the payment?

A: No, at present, no legal deductions will be applicable to the financial statement.

Q: Is the payment in foreign exchange?

A: No, on the Economic Council basis and Ministry of Energy's Act, the power purchase rate is calculated in Rials.

Q: Is there any payment in advance?

A: No, there is no decision in this regard.

The price of electricity:

Q: How would you calculate and announce the next year's price of electricity generated from renewable sources?

A: In accordance with the change in expenditures, other relevant cases and also general policies of the country.

Feasibility study:

Q: Is the feasibility study for the construction of the power plant done/confirmed by SATBA?

A: 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.

Q: Which companies can get help in performing the feasibility studies from?

A: All local and foreign consultants

Q: Does SATBA provide the list of consultants?

A: Yes, at the moment there is a list of qualified consultants in SATBA.

Grid Connection Permit:

Q: How is the process of receiving the grid connection permit?

A: 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.

Environmental permit:

Q: Do Renewable power plants need to receive the environmental permit?

A: 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 location).

Q: How is the process of receiving environmental permit?

A: 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.

Acquisition of Land Permit:

Q: How does SATBA cooperate as for land acquisition?

A: 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.

Q: How much land is needed for the power plants?

A: 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.

Other Energies:

Q: Is the generated electricity from heat recovery in the industrial systems considered as the guaranteed clean and renewable power purchase?

A: Yes, the electricity generated from heat recovery is considered as clean energy and is available in the price list of power purchase.