Iran Allocates USD 1.5 Billion to Boost Solar Power Infrastructure

In a major step towards addressing its ongoing electricity shortage, Iran’s top economic council has approved a USD 1.5 billion funding package for the import of solar power equipment.

The decision was ratified during a meeting of the Supreme Economic Coordination Council in Tehran, attended by President Masoud Pezeshkian, Parliament Speaker Mohammad Baqer Qalibaf, and Judiciary Chief Gholamhossein Mohseni Ejei.

Under the plan, Iranian banks will issue loans worth USD 1.5 billion to the Ministry of Energy for the procurement of equipment needed to build solar power plants with a total capacity of 7,000 MW. The initiative, backed by the Central Bank of Iran, is expected to significantly boost the country’s renewable energy portfolio.

The funding comes at a critical time as Iran grapples with widespread power outages. The government has already begun implementing scheduled two-hour electricity cuts in residential areas, with industries also bearing the brunt of the shortfall.

Energy Minister Abbas Aliabadi has previously outlined an ambitious roadmap for renewable energy. In February, he announced that Iran plans to generate 30,000 MW of renewable energy over the next four years, with 2,400 MW expected to come online by next summer.