2 THE POLITICS OF LOW-CARBON ENERGY IN IRAN AND IRAQ
31
between it and Azerbaijan. The construction sites were on Azerbaijani
territory occupied by Armenia, and, in addition to their practical use, they
form part of Tehran’s complicated diplomacy with its Caucasus neighbours. 50 Iran has also contributed to building the controversial Roghun
Dam in Tajikistan, as well as dams in Kyrgyzstan.
Non-hydro Renewable Energy
Iran’s progress in non-hydro renewable energy presents a sharp contrast
with its efforts in nuclear and hydropower. It has excellent solar and
wind resources, and a strong base of technical skills and local industry.
There is also domestic pressure for more renewable energy to improve
air quality and save on the use of scarce water in thermal and hydroelectric power plants. Renewable energy would also address its concerns over
self-sufficiency and the depletion of fossil fuel resources.
Renewable energy appeared in the 20-Year Economic Perspective, put
forward in 2005, where the target was to meet 18% of energy (probably meaning electricity) from renewables, likely including hydropower. 51
The Third Development Plan (2000–2005) included plans for a 250 MW
wind farm, while the Fourth Development Plan envisaged 1000 MW
of wind. 52 The Fifth Development Plan (2010–2015) introduced 20year power purchase agreements for renewables with feed-in tariffs, and
bonuses for higher local content. The Sixth Development Plan (2016–
2021) envisages installation of 5000 MW of renewables by 2021 and a
further 2500 MW by 2030. 53 In 2017, the country planned to reach
about 4 GW of non-hydro renewables by 2021.
Yet by 2019, it had an installed capacity of ‘modern’ renewables of
only 302 MW of wind, 367 MW of solar photovoltaic (PV) and 12 MW
of bioenergy. This contrasts strongly to a much smaller country such as
Jordan, which had in 2019 374 MW of wind, 998 MW of solar PV and
13 MW of bioenergy. 54 The solar plants in Iran are also mostly of small
size, 10 MW or less. The 20 MW Mokran plant was the country’s largest
when it was opened in the Kerman province in July 2017, financed by
a Swiss company and supervised by a German firm. 55 Of course, renewables have struggled to compete economically against low-priced gas, 56
until dropping in cost over the last few years, but the same applies to
nuclear power. Various scenarios can meet Iran’s power needs with a mix
of improved efficiency, gas and renewables with lower costs and CO 2
31
between it and Azerbaijan. The construction sites were on Azerbaijani
territory occupied by Armenia, and, in addition to their practical use, they
form part of Tehran’s complicated diplomacy with its Caucasus neighbours. 50 Iran has also contributed to building the controversial Roghun
Dam in Tajikistan, as well as dams in Kyrgyzstan.
Non-hydro Renewable Energy
Iran’s progress in non-hydro renewable energy presents a sharp contrast
with its efforts in nuclear and hydropower. It has excellent solar and
wind resources, and a strong base of technical skills and local industry.
There is also domestic pressure for more renewable energy to improve
air quality and save on the use of scarce water in thermal and hydroelectric power plants. Renewable energy would also address its concerns over
self-sufficiency and the depletion of fossil fuel resources.
Renewable energy appeared in the 20-Year Economic Perspective, put
forward in 2005, where the target was to meet 18% of energy (probably meaning electricity) from renewables, likely including hydropower. 51
The Third Development Plan (2000–2005) included plans for a 250 MW
wind farm, while the Fourth Development Plan envisaged 1000 MW
of wind. 52 The Fifth Development Plan (2010–2015) introduced 20year power purchase agreements for renewables with feed-in tariffs, and
bonuses for higher local content. The Sixth Development Plan (2016–
2021) envisages installation of 5000 MW of renewables by 2021 and a
further 2500 MW by 2030. 53 In 2017, the country planned to reach
about 4 GW of non-hydro renewables by 2021.
Yet by 2019, it had an installed capacity of ‘modern’ renewables of
only 302 MW of wind, 367 MW of solar photovoltaic (PV) and 12 MW
of bioenergy. This contrasts strongly to a much smaller country such as
Jordan, which had in 2019 374 MW of wind, 998 MW of solar PV and
13 MW of bioenergy. 54 The solar plants in Iran are also mostly of small
size, 10 MW or less. The 20 MW Mokran plant was the country’s largest
when it was opened in the Kerman province in July 2017, financed by
a Swiss company and supervised by a German firm. 55 Of course, renewables have struggled to compete economically against low-priced gas, 56
until dropping in cost over the last few years, but the same applies to
nuclear power. Various scenarios can meet Iran’s power needs with a mix
of improved efficiency, gas and renewables with lower costs and CO 2