What is Solar Photovoltaic technology?
Photovoltaic (PV) is a technology that converts the sunlight directly into electricity. Photovoltaic systems can be utilized for generating electricity in PV power plants, supplying all or part of electricity consumption in buildings, electrification of remote areas, and so on.
Solar PV account for the fastest growing market and the most capacity additions among all renewable energy technologies in the world.
In 2018, around 100 GW of solar photovoltaics was installed – accounting for 55% of renewable capacity additions. The total global capacity increased to at least 505 GW.
Solar PV is starting to play a substantial role in electricity generation in some countries as rapidly falling costs have made unsubsidized solar PV-generated electricity cost-competitive with fossil fuels in an increasing number of locations around the world.
Renewables are now the mainstream of the power industry in the world. For the fourth consecutive year, more renewable power capacity was installed than fossil fuel and nuclear power combined. Solar PV and Wind dominate the market. In addition, the net investment in increasing electricity capacity using renewables has been much more than fossil fuels in recent years.
The importance of renewable energy resources for electricity generation
Over the next years – as in previous years – electricity consumption will be increasing due to several reasons such as population growth, urbanization, improvement in standard of living, and climate changes. If this soaring demand supposed to be met solely through fossil fuel resources, the country will suffer so many social and environmental costs. It is therefore crucial to move toward utilization of renewable energy resources for electricity generation.
Guaranteed Renewable Power Purchase in Iran
A feed in tariff (FIT) scheme has been enacted and enforced in Iran. According to this scheme, the Iranian government sets a fixed price for purchase of renewable power, and guarantees to pay it to producers, over a long period of time, for each unit of electricity or kilowatt-hour (kWh), fed into the grid.
In 2015, the Iranian Ministry of Energy made fundamental improvements in the FIT program based on successful models worldwide, which presents resolute support of Iranian government to develop renewables. In addition to revising the rate and term of the tariffs, the Ministry of Energy has set technology-specific and size-specific tariffs to guarantee the profitability of different projects specially photovoltaics.
For instance, the following prices have been set for solar PV projects: 4,900 IRR/kWh for projects up to 10 MW; 4,000 IRR/kWh for projects up to 30 MW; and 3,200 IRR/kWh for projects above 30 MW.
In this regard, the Renewable Energy and Energy Efficiency Organization (SATBA) which is responsible for all missions and legal operations on renewable energy in Iran, signs a power purchase agreement with the producer, and guarantees to purchase the entire electricity generated for twenty years at rates adjusted annually according to the inflation. The support scheme is budgeted through renewable electricity charges on the electricity bills delivered to all consumers.
For more information on this, you may visit the SATBA website.
Contact Us
SAMANIR, Member of Alborz Science and Technology Park
Sama Niroo Alborz Company
Address: Alborz Science and Technology Park, 3365166513, Karaj, Iran
