Iran Invites Companies to Build Solar Power Plants with $3.2 Billion Investment

Strategic Insights -

Iran's Renewable Energy and Energy Efficiency Organization (SATBA) has invited qualified companies to apply for the construction of solar power plants with a financing of $3.2 billion from the National Development Fund (NDF). The call for applications, which will be open from August 17 to August 22, 2025, is part of a broader plan to build 7,000 megawatts of solar power capacity. The investment aims to accelerate the development of renewable energy and strengthen Iran's power generation mix with the backing of the sovereign wealth fund.

Key Takeaways:

  • Iran's SATBA has invited companies to apply for the construction of solar power plants with a financing of $3.2 billion from the NDF.
  • The call for applications will be open from August 17 to August 22, 2025, and is part of a broader plan to build 7,000 megawatts of solar power capacity.
  • The investment prioritizes solar systems that feed electricity directly into local distribution networks, particularly small-scale rooftop units installed by households or private entities.
  • The financing structure allocates 80% of the required capital to the NDF and 20% to private-sector participants.
  • Each investor can apply for up to 1,000 megawatts of capacity, with returns for the sovereign wealth fund set at an annual rate of eight percent in hard currency.
  • The Energy Ministry will guarantee the purchase of unsold surplus electricity at up to 70% of the average green energy price on the Iran Energy Exchange.
  • The announcement comes as Iran accelerates efforts to expand renewable energy production amid rising domestic demand and the long-term need to diversify away from fossil fuels.
  • Officials say the country aims to install 10,000 megawatts of renewable capacity in the near future, with rooftop solar playing a key role in meeting both environmental and grid resilience goals.

Statistics:

  • $3.2 billion: The investment from the National Development Fund to support the construction of 7,000 megawatts of solar power capacity.
  • 7,000 megawatts: The target solar power capacity under the decision by the Supreme Economic Council.
  • 80%: The allocation of required capital to the NDF.
  • 20%: The allocation of required capital to private-sector participants.
  • 1,000 megawatts: The maximum capacity each investor can apply for.
  • 8%: The annual rate of return for the sovereign wealth fund.
  • 70%: The guarantee for the purchase of unsold surplus electricity.
  • 10,000 megawatts: The target renewable energy capacity for Iran in the near future.

Sources:

  • Iran's Renewable Energy and Energy Efficiency Organization (SATBA)
  • National Development Fund (NDF)
  • Iran's Supreme Economic Council
  • Energy Ministry
  • Global Data Point
  • SyndiGate Media Inc.