Seventh Development Plan Bill (1402–1406)

The Seventh Development Plan Bill (1402–1406) establishes an economic framework with specific quantitative targets for the power sector, including an 8% annual growth target for water, electricity, and gas. By the end of the plan (1406/2028), the government aims to reach a total nominal installed capacity of 124,485 MW, with 7,388 MW specifically from renewable sources, and improve power plant efficiency to 41%. To support infrastructure, the bill mandates a reduction in transmission and distribution losses to 12% and introduces a specific budgetary mechanism where 2.5% of performance credits can be allocated to construction and investment service costs for transmission and distribution networks under companies like Tavanir and the Thermal Power Plant Holding Company. Additionally, it transitions the sector toward a market-based model, requiring 60% of electricity transactions to take place on the energy exchange.

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