Market Trends of Iran Wind Energy Industry
This section covers the major market trends shaping the Iran Wind Energy Market according to our research experts:
Onshore to Dominate the Market
- Iran has relied primarily on a fossil fuel-based energy sector to power its country. However, in the last decade, Iran took a few steps to decrease its dependency on fossil fuels by investing in renewable energy through wind power.
- As the demand for energy is rising, Iran is turning toward adopting renewable energy as it can provide clean energy. The adoption of onshore wind energy with advanced technology attracts companies for high investment.
- Iran's onshore wind power installed capacity increased by 0.6% in 2021. In 2021, the installed capacity of solar energy in Iran was 310 MW as compared to 2020, which was 308 MW.
- Wind energy in Iran has great potential. The 61.2 MW Sihapoush wind farm, located in the northwestern province of Qazvin, is the country's largest project.
- Manjil Wind Farm Site, Binalood Wind Farm Site, Zabol - Sistan, Babakoohi - Shiraz, Oun ebn-e-Ali-Tabriz, Sar Ein (Ardebil), Seffeh - Isfahan, Mahshahr, Nir, Sarab, Khaaf - Khorasan Razavi, Takestan, Nishabour - Binalood are some of the wind power plants operating in Iran.
- Owing to these factors, along with declining costs and improved technology, the onshore wing energy sector is expected to drive the market during the forecast period.
Understand The Key Trends Shaping This Market
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Increasing Deployment of Solar PV to Hinder the Growth of the Market
- Iran has vast solar energy potential, with around 300 clear sunny days in a year and an average potential yield of 4.5 to 5.5 kilowatt-hours per square meter per day.
- Solar PV installed capacity in Iran will increase by 6% in 2021. In 2021, the installed capacity of solar energy in Iran was 456 MW compared to 2020, which was 430 MW.
- Iran has shown interest in renewable energy technologies, including solar power, and is keen to exploit its abundant solar resource with newer technology.
- With the anticipated technological improvements and decreasing costs, investors/developers are expected to focus on the commercial viability of solar projects.
- In April 2022, Iran's Renewable Energy Organization and Electricity Efficiency (SATBA) launched a tender to deploy 4 GW of PV capacity. The agency wants to select proposals for solar projects up to 10 MW in size from domestic and foreign investors. Selected projects will be granted construction permits and a fixed tariff.
- Therefore, the increasing solar PV deployment is expected to hinder the market's growth.
