Liquid Fuel Exchange Purchase

Source: IEA/IRENA Renewables Policies Database
Last updated: 21 November 2014

Under Article 19 of the Budget law, in order to implement efficiency improvement plans in power plants with a priority in installation of steam unit in combined cycle plants, development of RE energy use, reduction in losses, optimization of energy consumption,  saving in liquid fuel consumption and increasing the share of fuel exports, the Ministry of Energy is permitted up to sign contracts to a total value of one hundred and twenty thousand billion (120,000,000,000,000) Rials in buyback with investors in private and public sectors for plans of:  

  • Efficiency and generation improvement in governmental and private sectors' power plants,
  • development of RE plants,
  • and reduction of losses and optimization of energy consumption, in preference of using domestic equipment.  

According to Section 3 of Article 4 of executive directive for Article 19 of Budget law of 2013, the Ministry of Energy can through TAVANIR assign contracts in buyback method with applicant investors for installation of RE plants. In such contracts, the amount of fuel saved in two years of plant operation shall be estimated, and within those two years the price of electricity purchased from investors shall exclude the cost of the amount of fuel saved (that is delivered to the investors).

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