The first phase of the solar power facility, delivering 120 megawatts, was officially launched with President Masoud Pezeshkian participating online.
Minister of Industry, Mine, and Trade Mohammad Atabak praised the project as a clear demonstration of Iran’s national resolve to pursue environmentally sustainable growth.
The inauguration marks a pivotal step in addressing critical energy shortages that have long challenged Iran’s industrial sector, especially the energy-intensive steel industry.
The move not only signifies a shift towards renewable energy but also exemplifies a model of industrial self-reliance and environmental responsibility that other sectors could emulate.
Over the past decade, Iran’s industries have grappled with significant energy supply constraints. Power rationing and frequent outages have disrupted production lines, undermining industrial output and economic growth.
The steel sector, a backbone of the Iranian economy, has been particularly affected by soaring energy costs and limited grid availability.
According to Mobarakeh Steel’s CEO Saeed Zarandi, electricity prices for industries have surged more than 28-fold in the last five years, while gas prices have seen a 20-fold increase. This alarming inflation in energy costs poses a serious threat to the competitiveness and sustainability of Iran’s manufacturing base.
Demand for electricity at Mobarakeh Steel currently stands at approximately 1,610 megawatts (MW), yet only about 50 MW is supplied by the national grid.
The vast majority of its power needs must be met through self-generation. This gap highlights the urgency for industries to seek independent and stable sources of energy.

sustainability, and resilience, paving the way for a cleaner, stronger economy and reaffirming Iran’s capacity for leadership in green industrial development.

Despite Iran’s abundant sunshine and significant renewable energy potential, the widespread adoption of solar power faces critical obstacles.
The primary barrier remains the artificially low cost of fossil fuels. Subsidized and cheap gas and oil prices undermine the economic competitiveness of solar and other renewable energy projects.
Iran’s reliance on fossil fuels is entrenched, with thermal power plants accounting for approximately 93.5% of national electricity production, consuming over 70 billion cubic meters of natural gas annually.
Moreover, Iran faces a troubling paradox: despite possessing the world’s second-largest natural gas reserves, the country is experiencing shortages severe enough to necessitate gas imports from neighboring states. This shortfall stems partly from growing domestic demand, infrastructure bottlenecks, and export commitments.
Another critical challenge lies in the aging and inefficient power infrastructure. Transmission and distribution losses in Iran’s electricity grid exceed 13% of generated power—an unusually high figure that exacerbates supply shortages, especially during peak summer months when demand outstrips supply by 14,000 to 15,000 MW.
These inefficiencies inflate costs and reduce the reliability of the grid, further incentivizing industries to seek off-grid solutions.
Iran is endowed with an abundance of sunlight, making solar energy an ideal renewable resource for the country. The solar power plant developed by Mobarakeh Steel will eventually generate 600 MW.
The project, with an investment exceeding 305 million euros, embodies Iran’s broader commitment to reducing carbon emissions and advancing “green steel” production.
From an economic perspective, this shift to solar energy reduces reliance on fossil fuels and mitigates the financial burden imposed by fluctuating fossil fuel prices and illegal Western sanctions.
By generating electricity internally, industries like Mobarakeh Steel alleviate pressure on the national grid, which faces growing demand, especially during peak consumption seasons.
The environmental benefits are also noteworthy. The new solar facility is projected to cut carbon dioxide emissions by around 810,000 tonnes annually, contributing to Iran’s global climate commitments and improving local air quality — a critical public health concern in many urban centers.
Beyond energy security and environmental gains, the solar power initiative offers significant socio-economic benefits. The project has created around 400 direct jobs and 3,000 indirect jobs, stimulating employment in a sector poised for expansion.
As Iran continues to invest in renewable energy infrastructure, the ripple effects on job creation, technical skill development, and domestic manufacturing of solar components could be substantial.
This aligns with government goals to diversify Iran’s economy and reduce dependency on oil exports, which remain vulnerable to geopolitical tensions and market volatility. Renewable energy projects like this one can become a cornerstone of a more resilient, knowledge-based economy.
Iran’s embrace of solar power within heavy industries like steel manufacturing reflects a strategic adaptation to enduring sanctions and domestic economic pressures.
By reducing dependence on the national grid, major industrial enterprises shield themselves from supply disruptions and cost spikes, safeguarding production continuity and export potential.
The successful deployment of such projects may serve as a catalyst for broader adoption of renewable energy across Iran’s industrial base and urban infrastructure. Given its exceptional solar irradiance, the country is well-placed to emerge as a regional hub for solar energy generation.
The economic benefits extend beyond the immediate industrial sphere. Reduced fossil fuel consumption means lower subsidies and fuel imports, freeing resources for investment in other critical areas such as healthcare, education, and infrastructure development.
Mobarakeh Steel’s bold investment in solar energy sets a powerful example of innovation,