A comprehensive strategic assessment has identified Iran's vast, untapped potential in solar and wind power, positioning these renewable sources as pivotal for the nation's long-term energy transition and economic diversification. The study, conducted by the Renewable Energy Research Center of Tehran, underscores the critical need for policy reforms and infrastructure modernization to capitalize on these abundant resources. This development comes as global energy markets increasingly prioritize sustainable solutions, offering Iran a pathway to enhance energy security and reduce its carbon footprint.

Iran, a nation rich in hydrocarbon reserves, also possesses exceptional solar irradiance levels across its central and southern regions, with average daily solar radiation exceeding 5 kWh/m². Concurrently, its western and eastern provinces, particularly along the Caspian Sea and in Sistan and Baluchestan, exhibit consistent high-wind speeds, making them ideal for large-scale wind farm development. The strategic assessment highlights that leveraging these indigenous renewable resources could significantly reduce domestic fossil fuel consumption, freeing up natural gas and oil for export and bolstering national revenue.

The analysis further emphasizes the economic viability of utility-scale solar photovoltaic (PV) and wind projects, projecting competitive levelized costs of electricity (LCOE) compared to new conventional power plants, especially given rising global carbon pricing mechanisms and the volatility of fossil fuel markets. Experts suggest that an initial investment of approximately $5-7 billion could unlock gigawatts of renewable capacity, potentially adding 3-5 GW of combined solar and wind capacity within the next five to seven years, contingent on favorable policy environments.

A significant finding of the assessment points to the necessity of modernizing Iran's aging electricity grid. Current infrastructure limitations pose challenges for integrating intermittent renewable energy sources, necessitating investments in smart grid technologies, energy storage solutions, and enhanced transmission lines. "Our findings clearly indicate that while the resource potential is immense, the success of Iran's renewable energy pivot hinges on a robust and flexible grid capable of handling variable generation," stated Dr. Ali Rezaei, lead researcher on the project.

Policy recommendations stemming from the assessment include establishing clear, long-term renewable energy targets, implementing attractive feed-in tariffs or auction mechanisms, and streamlining permitting processes to de-risk investments. Furthermore, fostering international partnerships and attracting foreign direct investment (FDI) are deemed crucial, as Iran seeks to leverage global expertise and capital for its ambitious clean energy agenda. The report also suggests exploring hybrid solutions combining solar, wind, and battery storage to ensure grid stability and reliability.