Power Distribution Firms to Buy Renewable Output

EghtesadOnline: Power distribution companies guarantee the purchase of renewable electricity as representatives of the Renewable Energy and Energy Efficiency Organization, also known as Satba. Iran Power Generation, Distribution and Transmission Company (Tavanir) issued a directive on Saturday based on which domestic electricity companies will assume the responsibility of buying renewable power plants’ output for 20 years, ISNA reported.

News ID: ۷۴۵۷۴۲

29 July 2018

Water shortage and its effects on reducing hydroelectric and thermal power plants’ generation have made the role of renewable power stations, which produce 70% of their annual output in the hot season with no need for water, more prominent in Iran’s power sector.

On the prices of renewable power purchase, Taqi Zafaranchi, a Satba official, said each kilowatt-hour of biomass power is priced between 2,700 rials (6.1 cents) and 3,700 rials (8.4 cents), while electricity generated at wind plants is purchased at 3,400-4,200 rials (7.7-9.5 cents).  Zafaranchi added that the administration purchases private solar output at a rate of 3,200 rials (7.2 cents) to 4,900 rials (10.1 cents) for each kilowatt-hour.

Stressing that the price ceilings are determined by Satba, he noted that owners of small wind and solar plants can sell their output at 5,700 rials (13 cents) and 700-800 rials (1.5-1.8 cents) for each kilowatt-hour respectively, Financial Tribune reported.

“The deals between private renewable producers and the government are adjusted every fiscal to compensate for the rial’s devaluation,” Zafaranchi said.  Zafaranchi underlined that the 20-year period of guaranteed power purchase from renewable plants includes their construction process.

“In case of a delay in launching a renewable plant for a maximum of nine months, Satba will be authorized to terminate the contract and cancel its construction license,” he said.

Since July 2009, Iran has generated over 2.2 billion kilowatt-hours of renewable electricity, saving 494 million liters of water, as thermal power plants require water for electricity production.

The renewable output has also prevented the emission of 1.54 million tons of greenhouse gases into the environment. If the renewable power volume were to be produced in thermal power plants, more than 630 million cubic meters of fossil fuels, such as gas and diesel, would have been burnt.

Iran’s renewable power production capacity has reached 602 megawatts, while renewable power plants with a combined capacity of 472 MW are under construction across the country.

Data show wind, solar, hydropower, waste heat recovery and biomass power plants account for 45%, 35%, 16%, 2% and 2% of the total renewable electricity produced in Iran respectively.