Policies

Iran Feed-in Tariff

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 1 March 2018

According to Article 61, the Ministry of Energy must take measures to support the development of renewable energy sources, including wind, solar, geothermal, small hydropower (up to ten megawatts), marine and biomass energy (including wastes, agricultural and forest residue, garbage and sewage of urban, industrial, livestock, biogas and biomass) and the purpose of facility and integration of these matters by the relevant organization, and sign a guaranteed power purchase contract for long-term with the private producers of electricity from renewable sources.

Note 1: The conditions and power purchase price of the generated electricity from renewable sources are to approved by Cabinet with the Ministry of Energy proposal.

Note 2: The Ministry of Energy subsidiaries, including regional electricity companies and distribution companies, must take measures to deliver and purchase electricity from the relevant organization in coordination with Iran Power Network Management Company.

Note 3: The required financial resources for the guaranteed purchase of generating electricity from renewable sources will be secured and paid by the value of the saved fuels based on the import liquid fuel price and natural gas export prices and the gained benefits from the prevention of generating the pollutants and protection of the environment, in return for the produced electricity of such as the power plants.

Executive regulation of the Article will be approved by the Cabinet six months after enactment of this Act with the joint proposal of the Ministries of Energy and Petroleum. - Power purchase agreement (PPA) of power plants subject to this announcement are extended for a 20-year period with the specified tariffs.

 

  • To compensate for evaluation of money, the tariffs will be annually adjusted during the contracts based on Euro-exchange rate fluctuations and internal inflation according to article 3 of honorable Cabinet Act.
  • All tariffs except wind farms will be multiplied by 0.7 starting from the first day of the second 10 years till the end of the contract.
  • Tariffs subject to this announcement multiplied based on the hourly coefficient which is announced and updated by Iran Grid Management Co.
  • Tariffs can be increased up to a maximum of 30% for power plants constructed, using local know-how, design and manufacturing, according to the instruction of article 6 of honorable Cabinet Act. 
  • For the power plants connected to the distribution grid, a transmission service rate will be added to the FiTs. The transmission service rate will be announced by Iran Grid Management Co.

 

 

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