The Iranian Deputy Minister for Energy, Dr. Sattar Mahmoudi, and the Managing Director of the Renewable Energy Organization of Iran (SUNA), Dr. Seyed Mohammad Sadeghzadeh, welcomed more than 400 attendees, twice as many as expected, at the first Intersolar Summit Iran in Tehran on November 15, 2016. Main discussions were about grid-integration solutions, financing and foreign investments.

Tehran, November 24, 2016 - The development of the PV markets in Iran was seen mostly positive by all speakers and attendees of the first Intersolar Summit Iran, taking place in Tehran. PV can contribute to the growing energy demand in general and especially to the higher peak load profiles which utilities are continuously facing. There is also the advantage that PV power plants can be built in very short time frames compared to conventional power plants. But major challenges and concerns remain.

Finding suitable land and remains difficult for foreign investors, followed by getting the land license to build and operate a PV system. The Intersolar Summit also focused on environmental impacts on module and system performance. Due to Iran's location the climate is influenced by the subtropical aridity of the Arabian desert areas and the subtropical humidity of the eastern Mediterranean area. These climate conditions influences the output and durability of PV Systems.

The challenges for PV grid-connections were presented by Mr. Saed Raei, Manager of Grid Connection Sector from the Iran Power Generation and Transmission Company (TAVANIR) and regional electricity companies and Distribution System Operators (DSOs) such as Mr. Bahman Ghazi Zadeh, Manager of the Regional Electricity Company of Zanjan Province and Mr. Homayoun Berahmandpour, Head of Bulk Power Transmission. Up to today, grid connection of PV power plants might be challenging due to different procedures in each province. Therefore it is recommended that international and local investors of renewable energy work closely together with the Renewable Energy Organization of Iran (SUNA). To reach more understanding for the new grid challenges, it was also recommended to offer training for DSOs and Transmission System Operators (TSOs) from the Government.

So far, SUNA has set up a good framework with the local Feed in Tariffs, but it needs to move on with standardization and automatized processes with DSOs which are reliable and valid everywhere in Iran. Jörg Mayer, managing director from the German Solar Association (BSW) recommends to standardize approval processes instead of negotiating each project approval individually and personally with several authorities and governments. This sounds reasonable for Iranian authorities, but is contrary to cultural business behavior. "SUNA does a great job, but it will take at least 5-10 more years to find standardized solutions. In the near future in small scale PV will be much more successful. Iranian people need to change their minds to make clean air and energy possible", says Aki Tamiz Abkhtiari from Canada, attending the Tehran-Summit.

Networking and getting first-hand answers was the major interest of international EPC contractors, as for example IBC Solar at the Intersolar Summit. Even if all preparations are made, and payment guarantees were given, missing physical documents make it difficult to keep the trust of foreign banks and financiers. Many project developers recommended to use 100 equity finance because the high interest rates within Iran reduce the Internal Rate of Return (IRR) of the projects significantly, although Jafar Mohammadnejad, Deputy of Planning at SUNA advises project developers not only to fund projects from abroad.
According to Volker Kuntz, Managing Director at Trepte Corporate Advisors GmbH, financing stays challenging since there is uncertainty with international banks and the question how to deal with ‚US-secondary sanctions‘. Only a few international banks finance Iranian PV projects, and if, only with max 2 years, but renewable energy is a priority sector in Iran and benefits from governmental support. Foreign investors may benefit from the comfort of Irans Foreign Investment Promotion and Protection Act FIPPA and guarantees to be issued by the Organization for Investment, Economic and Technical Assistance of Iran (OIETAI). Iranian banks demand very high interest rates of up to 20%, but 20-30% IRR is possible trough equity financing in certain projects.

For more information see: www.intersolar-summit.com/iran

Information about the Intersolar Summit Middle Iran

Organizers: The Intersolar Summit Iran is organized by Solar Promotion International GmbH and Freiburg Management and Marketing International GmbH.

Diamond-Sponsors & Supporters: The Intersolar Summit Iran is officially supported by the Diamond Sponsors Niruyekhorshid, Rhein Solar + NKP and Sunel. Strategic partners of the Intersolar Summit Iran are EuPD Research and the German Solar Industry Association (BSW). Local partners are the Iran Wind Group and Aysa Ltd. Other supporters include the British Photovoltaic Association, GÜNDER, Joint Forces for Solar and the International Battery & Energy Storage Alliance (IBESA).

Intersolar Summit contacts:
Solar Promotion International GmbH | P.O. Box 100 170 | 75101 Pforzheim, Germany
Tina Engelhard | Head of Business Development | Tel: +49 7231 58598-207 | engelhard@solarpromotion.com

EuPD Research | Adenauerallee 134 | 53113 Bonn, Germany
Daniel Fuchs | Director Marketing & Events | Mobile +49 173 5261672 | fuchs@intersolar-summit.com

Media inquiries:
Solar Promotion International GmbH | Tel: +49 7231 58598-207 | engelhard@solarpromotion.com

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About Intersolar
With events spanning four continents, Intersolar is the worlds leading exhibition series for the solar industry and its partners. It unites people and companies from around the world with the aim of increasing the share of solar power in our energy supply. Intersolar is inspired by the guiding principle: Connecting Solar Business.

The exhibition and conference series focuses on the areas of photovoltaics, PV production technologies, energy storage systems and solar thermal technologies. Since being founded, Intersolar has become the most important industry platform for manufacturers, suppliers, distributors, service providers and partners in the global solar industry. With 25 years of experience, Intersolar has the unique ability to bring together members of the solar industry from across the worlds most influential markets. Intersolar exhibitions and conferences are held in Munich, San Francisco, Mumbai, São Paulo and Dubai. These global events are complemented by the Intersolar Summits, which take place in emerging and growing markets worldwide.

For more information on Intersolar, please visit: www.intersolarglobal.com