The Minister of Energy announced the guaranteed purchase price of renewable electricity

The Minister of Energy announced the guaranteed purchase price of renewable electricity

The new decree on the terms and rates of guaranteed purchase of renewable electricity was announced by the Minister of Energy. A 40 percent increase in the base rate for guaranteed purchase of electricity with a capacity of 10 MW, a change related to solar generators and the process of holding tenders for power plants with the capacity of 10 MW and above are among the most important issues of this decree.
According to the Public Relations and International Affairs Office of SATBA, based on paragraph (2) of the new decree of the Minister of Energy, concluding a contract for the guaranteed purchase of electricity from renewable electricity generation capacities with a maximum capacity of 10 MW, with a rate equivalent to 1.4 of the rates subject to Resolution dated 2019 and the conditions of paragraph (2) is unhindered.
According to the latest decree issued by the Minister of Energy, if the capacity of the power plant is less than (10) megawatt, SATBA is allowed to conclude a contract for the guaranteed purchase of electricity based on the figures Small hydropower (10 MW and less)in the following tables:


Types of Power Plants

Guaranteed electricity purchase tariff (IRRs per kWh)






Other biological (biochemical) processes, including: Anaerobic digestion



All thermal processes (thermochemical) including: waste incineration, gasification and pyrolysis



Wind farm (10 MW and less)



Solar farm (10MW and less)



Geothermal (including excavation and equipment)



Electricity generation from waste heat recycling in industrial processes



Small hydropower (10 MW and less)

Installation on the rivers


Installation on the pipelines and side facility of dams



Fuel cell systems



Turbo expanders



Basic rate of guaranteed purchase of electricity

(Rials per kilowatt hour)

Generators for power subscribers up to the branch capacity



Wind (one megawatt and less)



PV (200 kW and less)



PV (20 kW and less)


In order to overcome environmental problems in coastal provinces and mega cities, the base electricity tariff from biomass technology will be increased two times.
Pursuant to Note (2) of paragraph 2-1 of the decree of the Minister of Energy, the step related to solar generators with a capacity of 100 kW and less is changed to 200 kW and less.
In addition, according to this paragraph, the maximum cash payment of invoices in each period is proportionate with SATBA's allocated budget. Apparently, the checkout of the remaining demand of the seller of renewable electricity in cash will be conditional on receiving the difference between the obligatory and cost price from the government or obtaining other allocated sources such as saved fuel credits, financial bonds, treasury documents, etc. At the same time, the debts will be registered in the government debt and information management system (SAMAD) and will be among the claims of the private sector from the government and this debt can be collected by common methods such as debt clearing with the government, saved fuel remittances, treasury documents, etc.
Another important point of this decree is clause 2-3, according to this clause, the amount of tariff for all power plants subject to this decree, except wind power plants, is subject to the application of a three-step reduction rate (after applying all coefficients) at the beginning of the eighth, twelfth and sixteenth years. This coefficient is equal to 60%. In the case of wind farms, the previous approvals will be followed.
It is worth mentioning that in order to encourage the applicants for the construction of a power plant with a capacity of more than 10 MW, SATBA, as before, periodically conducts tenders based on the new ceiling announced in the above-mentioned decree.

The Minister of Energy announced the guaranteed purchase price of renewable electricity The Minister of Energy announced the guaranteed purchase price of renewable electricity

May 19, 2021 22:52
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