Iran Wind Energy Market - Growth, Trends, and Forecasts (2023-2028)

The Iranian wind energy market is expected to register a CAGR of more than 7% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Presently, the market has reached pre-pandemic levels.

Key Highlights

• Over the medium term, factors such as increasing demand for renewable energy, rising investments in wind farms, government policies, and declining cost of wind energy are likely to drive the wind energy market in Iran.
• On the other hand, the increasing adoption of alternate clean power sources is likely to restrain the growth of the wind energy market in Iran in the coming years.
• Nevertheless, with the aim to reduce fossil-fuel consumption and increase the possibilities of sustainable development, the use of renewable energy is being explored in the country. The potential for renewable energy in Iran makes it attractive for the government sector, the private sector, and companies to shift toward clean energy, which, in turn, may provide an opportunity to increase the deployment of wind energy in the future.

Iran Wind Energy Market Trends

Onshore to Dominate the Market

• Iran has relied primarily on a fossil fuel-based energy sector to power its country. However, in the last decade, Iran took a few steps to decrease its dependency on fossil fuels by investing in renewable energy through wind power.
• As the demand for energy is rising, Iran is turning toward adopting renewable energy as it can provide clean energy. The adoption of onshore wind energy with advanced technology attracts companies for high investment.
• Iran's onshore wind power installed capacity increased by 0.6% in 2021. In 2021, the installed capacity of solar energy in Iran was 310 MW as compared to 2020, which was 308 MW.
• Wind energy in Iran has great potential. The 61.2 MW Sihapoush wind farm, located in the northwestern province of Qazvin, is the country's largest project.
• Manjil Wind Farm Site, Binalood Wind Farm Site, Zabol - Sistan, Babakoohi - Shiraz, Oun ebn-e-Ali-Tabriz, Sar Ein (Ardebil), Seffeh - Isfahan, Mahshahr, Nir, Sarab, Khaaf - Khorasan Razavi, Takestan, Nishabour - Binalood are some of the wind power plants operating in Iran.
• Owing to these factors, along with declining costs and improved technology, the onshore wing energy sector is expected to drive the market during the forecast period.

Increasing Deployment of Solar PV to Hinder the Growth of the Market

• Iran has vast solar energy potential, with around 300 clear sunny days in a year and an average potential yield of 4.5 to 5.5 kilowatt-hours per square meter per day.
• Solar PV installed capacity in Iran will increase by 6% in 2021. In 2021, the installed capacity of solar energy in Iran was 456 MW compared to 2020, which was 430 MW.
• Iran has shown interest in renewable energy technologies, including solar power, and is keen to exploit its abundant solar resource with newer technology.
• With the anticipated technological improvements and decreasing costs, investors/developers are expected to focus on the commercial viability of solar projects.
• In April 2022, Iran's Renewable Energy Organization and Electricity Efficiency (SATBA) launched a tender to deploy 4 GW of PV capacity. The agency wants to select proposals for solar projects up to 10 MW in size from domestic and foreign investors. Selected projects will be granted construction permits and a fixed tariff.
• Therefore, the increasing solar PV deployment is expected to hinder the market's growth.

Iran Wind Energy Market Competitor Analysis

Iran's wind energy market is highly consolidated in nature. Some of the key players in this market include (in no particular order) MAPNA Group, MahTaab Group, Vestas Wind Systems AS, Siemens Gamesa Renewable Energy SA, and General Electric Company.

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Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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