Policy status:In Force
Date Effective:2005
Policy Type:Economic Instruments>Fiscal/financial incentives>Grants and subsidies
Renewable Energy Policy Targets:Multiple RE Sources
Policy Sector:Electricity
Size of Plant Targeted:Small and Large
Climate Change Policy Targets:Framework/ Multi-sectoral Policy
Agency:Ministry of Energy- Renewable energy organization of Iran (SUNA)
Legal References:Article 61-Amendment of Energy Consumption Pattern
Enforcement:Act of Iranian Parliament
Funding:Value of avoided cost of fossil fuels & benefits of the non-production of environmental pollutants
Renewable Energy Description:

Section A. Article 10 of section B article 25 of executive by law of sectional regulation of government financial mannual in 4th development program:

In order to encourage and persuade private sector to invest in renewable energy power plants, a definite amount in accordance to every 1KWh electricity generated by such power plants will be paid by Iran Department of Enviroment from the fund for plan No.40404002 in annual budjets and  by Iran management and programing organization's approval due to  not spreading emissions of pollutants to the enviroment.

Climate Change Description:

The Ministry of Energy is required to support the expanded use of renewable energy sources, including wind energy, solar, geothermal,hydro power (up to ten megawatts), marine and biomass (including agricultural waste, forestry waste and municipal,industrial & manure sweage, biogas and biomass) and aims to facilitate the integration of these activities through the relevant organizations and sign a long-term guaranteed contract pf purchasing the electricity from renewable sources produced by non-governmental developers.


  1. All subsidiary companies of Ministry of Energy including utilities and power distribution companies are required to purchace all power produced by renewable power plants.
  2. Needed financial resources for guaranteed purchace of renewable electricity is are supplied from the value of saved fossil fuels based on prices of imported liquid fuel and exported natural gas and The benefits of the non-production of environmental pollutants per unit of produced green electricity.

Last modified: Fri, 02 Mar 2018 10:52:13 CET