According to Section B of Article 133 of the law for the 5th Development Plan of IRI, TAVANIR and companies affiliated to the Ministry of Energy are permitted to sign guaranteed and long-term contracts for the purpose of purchasing electricity generated from renewable and clean energy sources, with a priority to purchase from private and co-operative sectors. The rate for purchase of power from renewable and clean energy sources in the competitive market of the national electricity grid, and taking to account the average annual avoided import or export value of the fossil fuel+average price of energy conversion in national electricity market + avoided cost of pollutant emission cuts approved by the Economic Council.
According to the approved direction for this regulatory article upon act no.93/22688/20/100 of 20/07/2014 of the Economic Council, the base rate for purchase of power from plants for maximum 5 years has been defined: at 4628 Rials per kilowatt-hour (Cost of production and transition to 20KV station) and 4480 Rials per kilowatt-hour for plants (only electricity production). IEA/IRENA Global Renewable Energy Policies and Measures Database © OECD/IEA and IRENA, [November 2020]