Iran Opens 95 MW Solar Project as Government Targets Faster Renewable Expansion
Iran has commissioned a 95 MW solar project in Tehran Province, strengthening renewable power supply for one of the country’s largest industrial zones as the government seeks to expand clean-energy generation.
Iran has brought 95 MW of new solar capacity into operation at Shamsabad Industrial Town in Tehran Province, adding generation capacity close to a major concentration of manufacturing activity.
President Masoud Pezeshkian attended the inauguration on August 25, according to the Iranian Presidency. The project comprises the 63 MW Qaed Shahid and 32 MW Shahday-e Lamerd solar plants, both located at Shamsabad Industrial Town.
The project was developed on a 147-hectare site and was completed in less than nine months, according to Iran’s official IRNA news agency, which reported that more than 6 trillion rials was invested in its construction.
Its location is closely linked to industrial electricity demand. IRNA reported that the facility is expected to provide part of the electricity required by Shamsabad Industrial Town during daytime peak-consumption periods. Hamidreza Azimi, deputy head of Iran’s Renewable Energy and Energy Efficiency Organization (SATBA), said the objective is to use renewable generation to supply industrial users in the area and reduce the extent of electricity interruptions affecting them.
Solar capacity accelerates
The commissioning comes as Iran’s solar sector expands rapidly.
IRNA reported that the country’s installed solar-generation capacity reached nearly 5,500 MW following the Shamsabad project.
The Iranian government is pursuing a substantially larger expansion. President Pezeshkian has set a target of 30,000 MW of clean and renewable generation capacity within two years, according to the Presidency.
SATBA’s Azimi separately said the organisation is targeting 12,000 MW of renewable capacity by March 2027, with solar accounting for approximately 11,000 MW of that total. He also said the Shamsabad project was financed through resources from Iran’s National Development Fund, which has provided financing support for renewable-energy projects.
The difference between the two figures is important: the 30,000 MW figure is the broader government target, while the 12,000 MW target cited by SATBA relates to the nearer-term renewable-capacity objective.
Industry becomes a focus for solar investment
The Shamsabad project also illustrates a shift towards locating renewable generation closer to electricity-intensive economic activity.
According to IRNA, the facility’s primary purpose is to support electricity supply to the industrial town, while SATBA has said that expanding renewable capacity around industrial areas is intended to help minimise interruptions to industrial power consumption.
The approach is particularly relevant as Iran seeks to address the imbalance between electricity supply and demand without relying solely on additional conventional generation.
Tehran Province is already seeing a broader expansion of solar projects. Tehran Governor Mohammad Sadegh Motamedian told the Iranian Presidency that solar capacity in the province had increased from 23 MW before the Pezeshkian administration took office to 400 MW, representing a 20-fold increase.
The governor also said the province is pursuing smaller and decentralised solar projects alongside large facilities, including installations at schools, mosques, agricultural sites, municipalities and industrial towns.
Financing and domestic production
The government’s renewable-energy push is also creating demand for financing and domestic equipment production.
SATBA’s Azimi said the Shamsabad project was financed through the National Development Fund, while noting that the fund has increased its support for renewable-energy projects over the past year.
The Iranian Presidency has separately reported Pezeshkian’s emphasis on supporting domestic solar-panel manufacturers, linking renewable-energy expansion with the development of local production capabilities.
For Iran’s energy sector, the Shamsabad project therefore represents a combination of two priorities: adding renewable generation and directing that capacity towards industrial electricity demand.
The immediate 95 MW addition is modest compared with the government’s longer-term targets, but the project demonstrates the model being pursued-developing solar generation close to major consumers while using public financing and domestic investment to accelerate deployment.
If Iran succeeds in scaling the programme towards its stated targets, the investment opportunity will extend beyond solar generation itself to equipment manufacturing, project development, financing, grid infrastructure and distributed renewable systems.
