Requests to build industrial power plants surge to 30,000MW as self-supply mandate expands – Tehran Times

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Jul 27, 2025 - 20:30
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Requests to build industrial power plants surge to 30,000MW as self-supply mandate expands – Tehran Times

 

Report on Iran’s Industrial Power Generation Initiative and its Alignment with Sustainable Development Goals

Executive Summary

A national initiative in Iran is promoting the development of self-supplied power plants by heavy industries to stabilize the national electricity grid. This report analyzes the program’s progress, challenges, and alignment with key Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 12 (Responsible Consumption and Production).

Program Status and Capacity Development

The demand from industrial sectors for self-supplied power generation has reached 30,000 megawatts (MW). The government’s response and current project status are detailed below:

  • Total Demand: 30,000 MW
  • Preliminary Approvals Issued: 19,357 MW
  • Capacity Under Development or Operational: 8,080 MW
  • Fully Commissioned Capacity: 2,320 MW
  • Projected Synchronized Capacity by March 2027: 6,000 MW

Alignment with SDG 7: Affordable and Clean Energy

The initiative directly addresses SDG 7 by aiming to secure reliable energy for industrial operations, thereby reducing pressure on the public grid. However, progress towards clean energy targets faces significant hurdles.

Target 7.3: Energy Efficiency

Fuel supply constraints from the Oil Ministry, limited to 11,500 MW of thermal capacity, have necessitated a focus on energy efficiency. Key strategies include:

  • Upgrading existing combined-cycle plants with steam units.
  • This approach is projected to generate an additional 6,000 to 7,000 MW of electricity without consuming more fuel, directly supporting the goal of improving energy efficiency.

Target 7.2: Renewable Energy

Progress in expanding the share of renewable energy remains critically slow. The 2022 “Electricity Industry Development Facilitation Law” mandates 1,000 MW of renewable power from industries, but achievements are minimal.

  • Mandated Renewable Capacity: 1,000 MW
  • Realized Renewable Capacity: 151 MW
  • Contributors:
    1. Mobarakeh Steel: 120 MW
    2. National Iranian Copper Industries Co.: 30 MW
    3. West Asia Steel: 1.0 MW

Officials have warned that an urgent acceleration is required to meet renewable energy and climate action objectives (SDG 13).

Advancing SDG 9 and SDG 12: Sustainable Industry and Responsible Production

The legal framework compels energy-intensive industries to invest in resilient infrastructure and adopt more sustainable production patterns, in line with SDG 9 and SDG 12.

Legal Mandates and Industrial Obligations

Under Article 4 of the law, sectors such as steel, copper, petrochemicals, aluminum, and refineries are obligated to:

  1. Develop a minimum of 9,000 MW of high-efficiency thermal power capacity, with at least 55% efficiency. This supports SDG 9.4 (upgrading infrastructure for sustainability) and SDG 12.2 (efficient use of natural resources).
  2. Develop 1,000 MW of renewable power capacity.
  3. Coordinate implementation with the Ministry of Energy, Ministry of Industry, and the Environment Department to ensure sustainable outcomes.

Incentive Structure

The policy includes a clear incentive mechanism to drive compliance:

  • Compliance Reward: Industries that meet their self-generation targets will be exempt from power restrictions during peak demand periods.
  • Non-Compliance Penalty: Industries failing to fulfill their obligations will be prioritized for scheduled power cuts.

Which SDGs are addressed or connected to the issues highlighted in the article?

  • SDG 7: Affordable and Clean Energy

    The article’s core subject is expanding electricity generation to meet industrial demand and stabilize the national grid. It directly addresses energy reliability, efficiency, and the integration of renewable energy sources, which are central to SDG 7.

  • SDG 9: Industry, Innovation and Infrastructure

    The focus on building new power plants specifically for heavy industries (steel, copper, petrochemicals) is a direct investment in industrial infrastructure. The article discusses upgrading infrastructure (“retrofit industries”) and building resilient systems to support economic activity, aligning with the goals of SDG 9.

  • SDG 12: Responsible Consumption and Production

    The article highlights efforts to improve energy efficiency. The plan to generate “6,000 to 7,000 megawatts of electricity without additional fuel consumption” by upgrading existing plants and the mandate for “high-efficiency thermal power capacity (minimum 55 percent efficiency)” both point towards more sustainable production patterns and the efficient use of natural resources (fuel).

  • SDG 13: Climate Action

    Although not the primary focus, the article’s mention of a legal requirement for industries to develop “1,000 megawatts of renewable power” and the push for higher efficiency are key strategies for climate change mitigation. The involvement of the “Environment Department” in coordinating the plan implies consideration for environmental impacts, which is related to climate action.

What specific targets under those SDGs can be identified based on the article’s content?

  • Target 7.1: Ensure universal access to affordable, reliable and modern energy services

    The entire initiative aims to address electricity shortages and “ease pressure on the national electricity grid.” By requiring industries to generate their own power, the plan seeks to ensure a reliable supply for key economic sectors and, by extension, improve the stability of the grid for all users.

  • Target 7.2: Increase substantially the share of renewable energy in the global energy mix

    The article explicitly mentions a legal mandate under the “Electricity Industry Development Facilitation Law” for energy-intensive industries to develop “1,000 megawatts of renewable power,” directly contributing to this target.

  • Target 7.3: Double the global rate of improvement in energy efficiency

    This target is addressed through two specific measures mentioned in the article: the requirement for new thermal plants to have a “minimum 55 percent efficiency” and the strategy to upgrade combined-cycle plants to generate power “without additional fuel consumption.”

  • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies

    The law obligating industries like steel, copper, and petrochemicals to invest in their own high-efficiency and renewable power generation is a direct example of retrofitting industries for sustainability and resource efficiency, as described in this target.

  • Target 12.2: Achieve the sustainable management and efficient use of natural resources

    The Oil Ministry’s fuel supply limitations for new power plants necessitate efficiency. The plan to add steam units to existing plants to generate up to 7,000 MW “without additional fuel consumption” is a direct strategy for the more efficient use of natural fuel resources.

Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

  • Indicator for Target 7.1 (Reliability)

    The total new power capacity connected to the grid is a key indicator. The article provides specific figures, such as the goal to have “6,000 megawatts… connected to the national grid by the end of the Iranian year 1405 (March 2027).”

  • Indicator for Target 7.2 (Renewable Energy)

    Progress can be measured by the installed capacity of renewable energy. The article provides a baseline and a target: “only 151 megawatts of the renewable target has materialized” out of a required “1,000 megawatts of renewable power.”

  • Indicator for Target 7.3 (Energy Efficiency)

    Two indicators are mentioned: the efficiency rate of new thermal plants (“minimum 55 percent efficiency”) and the amount of power generated through efficiency upgrades (“6,000 to 7,000 megawatts of electricity without additional fuel consumption”).

  • Indicator for Target 9.4 (Sustainable Industry)

    The total capacity of new, high-efficiency industrial power plants serves as an indicator. The article states that “8,080 megawatts are under development or already operational” under the industrial self-supply scheme, which includes high-efficiency and renewable projects.

Table of SDGs, Targets, and Indicators

SDGs Targets Indicators Identified in the Article
SDG 7: Affordable and Clean Energy 7.1: Ensure reliable energy services.
7.2: Increase the share of renewable energy.
7.3: Improve energy efficiency.		 – Total new capacity connected to the grid (Target: 6,000 MW by March 2027).
– Installed renewable capacity (Current: 151 MW vs. Target: 1,000 MW).
– Efficiency of new thermal plants (Minimum 55%).
– Power from efficiency upgrades (6,000-7,000 MW without extra fuel).
SDG 9: Industry, Innovation and Infrastructure 9.4: Upgrade infrastructure and retrofit industries for sustainability and resource-use efficiency. – Total capacity of industrial power plants under development or operational (8,080 MW).
– Total required capacity from energy-intensive industries (9,000 MW thermal, 1,000 MW renewable).
SDG 12: Responsible Consumption and Production 12.2: Achieve the sustainable management and efficient use of natural resources. – Megawatts of electricity generated without additional fuel consumption (6,000-7,000 MW).
– Fuel supply cap from Oil Ministry (Fuel for only 11,500 MW of thermal capacity).
SDG 13: Climate Action 13.2: Integrate climate change measures into national policies and planning. – Mandated renewable power capacity in industrial law (1,000 MW).
– Mandated high-efficiency thermal power (Minimum 55%).

Source: tehrantimes.com