Iran is seeking to fast-track solar energy development to address severe electricity shortages caused by aging infrastructure, chronic under-investment, and years of U.S. sanctions.
Despite possessing the world’s third-largest oil reserves and second-largest natural gas reserves, the country has faced rolling blackouts due to fuel and electricity shortages, worsened by climate change.
The government aims to reach 12 GW of renewable energy capacity within three years, up from 2.5 GW currently (about 2.5% of electricity generation).
President Masoud Pezeshkian emphasized rapid implementation of solar projects with private sector participation. Iran’s National Development Fund (NDF) pledged $2.3 billion to build 7 GW of renewables alongside private investment. Households are also being encouraged to install rooftop solar panels with incentives.
Challenges include limited contracting capacity, reliance on imports (mainly from China), currency devaluation, and restricted access to international financing due to sanctions.
Experts caution that without improving energy efficiency and consumption patterns, renewable projects alone may not fully resolve the electricity supply gap.