Iran Power Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Iran Power Market Report is Segmented by Generation Source (Natural Gas, Oil, Renewables, Nuclear, and Other Generation Sources), Transmission and Distribution, and End User (Residential, Commercial, and Industrial). The Report Offers Market Size and Forecasts in Installed Capacity for all the Above Segments.

Iran Power Market Size

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Iran Power Market Summary
Study Period 2020-2029
Base Year For Estimation 2023
Market Volume (2024) 96.96 gigawatt
Market Volume (2029) 116.25 gigawatt
CAGR (2024 - 2029) 3.70 %
Market Concentration Low

Major Players

Iran Power Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Iran Power Market Analysis

The Iran Power Market size in terms of production capacity is expected to grow from 96.96 gigawatt in 2024 to 116.25 gigawatt by 2029, at a CAGR of 3.70% during the forecast period (2024-2029).

  • Over the long term, factors such as high power demand, particularly from the growing manufacturing and construction industry, growth of renewables, and the requirement to renovate the power infrastructure in the country, which is currently in a crumbling situation, are the major driving factors during the forecast period.
  • On the other note, the unstable political scenario of the country is expected to hinder market growth in the near future.
  • Nevertheless, the country has huge power demand from the banking and financial sectors, largely due to cryptocurrency mining, which requires a considerable amount of electricity. The digital network required for bitcoin mining, which is widely followed in the country, is creating a tremendous opportunity for the electricity sector.

Iran Power Market Trends

Natural Gas Expected to Dominate the Market

  • Iran stands in second place in the world for natural gas reserves, accounting for around 1133 trillion cubic feet of proved reserves. Around 85% of electricity in the country is generated from thermal power technology, either in the form of combined cycle power plants, gas-based power plants, or a small ratio of oil-based power generation.
  • Iran’s gas-fired electricity generation capacity reached 300.2 TWh in 2022. Iran’s total power generation capacity currently stands at about 85,000 MW, more than 90 percent of which is supplied by thermal power plants. Currently, a total of 478 thermal power plants are operating throughout Iran, including both gas power plants and combined cycle plants.
  • In 2022, the capacity of 286 power plants in the country increased by about 1,035 megawatts with the implementation of plans to increase the generation capacity of gas and combined cycle units and remove the limitation of thermal power plants. Over two-thirds of Iran’s thermal power plants are owned and operated by the country’s private sector, and private owners are currently generating nearly 67 percent of Iran’s thermal power.
  • In February 2023, two more units with a capacity of 162 MW at the Mahtab Kavir plant (484 MW) in Zarand County in Kerman Province started producing electricity. The first unit of the Mahtab Kavir plant was connected to the grid in June 2022. The natural gas-fired power plant supports the electricity supply for three provinces—Kerman, Hormozgan, and Sistan-Baluchestan- in the country’s southern and southeastern regions.
  • Such developments are expected to accelerate gas-based power generation in the country over the coming years.
Iran Power Market: Natural Gas Fired Electricity Generation, in TWh, Iran, 2015-2022

Growth of Renewables Expected to Drive the Market

  • Iran's renewable energy potential largely includes solar energy, hydroenergy, geothermal, and a trivial ratio of wind and bioenergy. As of 2022, around 12.04 GW of renewable capacity was installed in the country, which has increased by 15.69% compared to 10.411 GW installed in 2015.
  • According to the Iranian government's 6th Development Plan, the government aims to install a renewable capacity of 7,500 MW of renewable energy by 2030. The government has set a target to increase its renewable energy share of electricity production by up to 12% by 2030.
  • Furthermore, the government aims to become a net-zero-emission economy by 2050. These policies are expected to increase investment in solar energy projects, which is expected to lead to higher sales of solar PV inverters in the country during the forecast period.
  • In July 2023, Iran’s Renewable Energy and Energy Efficiency Organisation announced that the country is set to construct a new 1,000-MW solar array in Qazvin. This initiative marks the beginning of a series of “Solar Parks” in the country and is expected to double the renewable energy output once fully operational.
  • Such developments are expected to offer robust growth for the renewable sources of power generation in the country.
Iran Power Market: Renewable Energy Installed Capacity, in GW, 2015-2022

Iran Power Industry Overview

The Irani power market is fragmented. Some of the key players in the market (in particular order) include MAPNA Group, Ardabil Electricity Distribution Company, Tabiran Co., Besat Power Generation Management Company, and KPV Solar Iran, among others.

Iran Power Market Leaders

  1. Ardabil Electricity Distribution Company

  2. Besat Power Generation Management Company

  3. MAPNA Group

  4. Tabiran Co

  5. KPV Solar Iran

*Disclaimer: Major Players sorted in no particular order

Iran Power Market Concentration
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Iran Power Market News

August 2023: The Iranian Government launched a new solar power plant in Semnan Province. The plant, which is located in the city of Damghan, has a capacity of 10 megawatts and is expected to generate enough electricity to power around 10,000 homes.

January 2022: The Iranian Energy Ministry announced plans to add around10 GW of renewable energy to the national power grid over the next four years. The country's renewable energy agency SATBA and the Energy Ministry signed an MoU to implement the plan and decided to allocate around IRR 30 trillion in the next budget to initiate the first phase of projects.

Iran Power Market Report - Table of Contents


    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions




    1. 4.1 Introduction

    2. 4.2 Installed Power Generation Capacity and Forecast, till 2028

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

        1. Growing Power Demand

        2. Growth of Renewables

      2. 4.5.2 Restraints

        1. Unstable Political Scenario of the Country

    6. 4.6 Supply Chain Analysis

    7. 4.7 PESTLE Analysis


    1. 5.1 Generation Source

      1. 5.1.1 Natural Gas

      2. 5.1.2 Oil

      3. 5.1.3 Renewables

      4. 5.1.4 Nuclear

      5. 5.1.5 Other Generation Sources

    2. 5.2 Transmission and Distribution

    3. 5.3 End User

      1. 5.3.1 Residential

      2. 5.3.2 Commercial

      3. 5.3.3 Industrial


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Ardabil Electricity Distribution Company

      2. 6.3.2 Besat Power Generation Management Company

      3. 6.3.3 MAPNA Group

      4. 6.3.4 Tabiran Co.

      5. 6.3.5 KPV Solar Iran

      6. 6.3.6 Azerbaijan Power Generation Company

      7. 6.3.7 Bandar Abbas Power Generation Company

      8. 6.3.8 Isfahan Power Generation Company

      9. 6.3.9 Zahedan Power Generation Company

      10. 6.3.10 Fars Power Generation Company

    4. *List Not Exhaustive

    1. 7.1 Huge Power Demand from the Banking and Financial Sector in the Country

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Iran Power Industry Segmentation

Power is generated through various primary sources such as coal, hydro, solar, thermal, etc. In utilities, it is a step before its delivery to its end users. The process is followed by transmission and distribution. Under this, the power generated is distributed via high-voltage lines (transmission lines) and low-voltage lines (distribution lines) as per the end user's requirement.

The Irani power market is segmented by generation source, transmission and distribution, and end-user. By generation source, the market is segmented into natural gas, oil, renewables, nuclear, and other generation sources. By end-user, the market is segmented into residential, commercial, and industrial. The report offers market size and forecasts in installed capacity for all the above segments. 

Generation Source
Natural Gas
Other Generation Sources
End User
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Iran Power Market Research FAQs

The Iran Power Market size is expected to reach 96.96 gigawatt in 2024 and grow at a CAGR of 3.70% to reach 116.25 gigawatt by 2029.

In 2024, the Iran Power Market size is expected to reach 96.96 gigawatt.

Ardabil Electricity Distribution Company, Besat Power Generation Management Company, MAPNA Group, Tabiran Co and KPV Solar Iran are the major companies operating in the Iran Power Market.

In 2023, the Iran Power Market size was estimated at 93.37 gigawatt. The report covers the Iran Power Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Iran Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Iran Power Industry Report

Statistics for the 2024 Iran Power market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Iran Power analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Iran Power Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)