As Iran’s significant resources of solar, wind and geothermal energy along with its special geopolitical location has made the country one of the best areas for investment in renewable energy, experts like Babaee and Teeuwen believe that Iran could become an electric hub in the region to export the produced electricity, as its production could exceed local demand in coming years.
Up until last year, when nuclear-related sanctions against the country were still in place, Iran’s plan for investment in renewable energy projects would have appeared highly ambitious and very difficult to achieve. But with the removal of major restrictions on foreign investment in Iran, in the eyes of many experts, the country’s investment goals of $10 billion by 2018 and $60 billion by 2025 now appear quite feasible.
Experts say development of the industry involves various challenges, including aged or underdeveloped infrastructure or a lack of expertise in certain specialized renewable energy technologies. But many believe that the government’s strong commitment to diversifying its energy mix and modernizing its infrastructure along with local and foreign investors’ interest to invest in renewable projects leaves little doubt that Iran is moving in the right direction.