Intl. firms discuss Iran renewables expansion

Iran is holding a key conference to bring the world's renewable energy companies and financiers to the country to meet with local partners.

The Iranian Renewable Energy Commercial Conference (IRECC), held through Dec. 5-8 in Tehran, is the first of its kind in order to encourage prospective investors to move in and start work.

Iran is seeking 5,000 megawatts of renewable energy by 2020, with more than 4,000 megawatts expected to come from wind power. The country has approximately 141 megawatts of installed wind power.

According to SUNA, the renewable energy organization of Iran, there are already 15 wind farms operational in Iran but there's 100,000 megawatts of potential capacity from wind alone.

Alex Stein, senior producer at Green Power which is hosting IRECC, said SUNA has modeled its new feed-in tariff policy on the German equivalent.

“It is a sign of the country's gathering support for renewable energy that the tariff is significantly longer and at higher prices than previous years," he said in remarks quoted by the London-based Windpower Monthly.

Iran has "fantastic typography for wind and the population is well educated," Stein added.

SUNA is looking to attract $10 billion of direct private investment by 2018 and $60 billion by 2025. The national grid is also being upgraded so it can cope with any influx of renewables.

Stein said the country has a strong supply chain, with good steel tube and pipe infrastructure and there is Chinese investment in Iran's ports.

International banks, he said, are cautiously working out how to do business in Iran.

"It will mean developers and banks will have to do more work to finance projects, but the returns are worth it," Stein added.

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