Iran Begins 5,000-MW Solar Project in Isfahan as Renewable Push Accelerates

Iran has begun work on a 5,000-megawatt solar power project in Isfahan Province, a development that could place the city among the world’s largest centers of solar electricity generation if completed at its announced capacity. The project represents a major expansion of renewable power in a country whose electricity system has struggled to keep pace with rising demand, particularly during peak summer periods.

Iran generated around 399 terawatt-hours of electricity in 2025, with about 95 percent coming from fossil fuels and natural gas accounting for roughly 90 percent of total generation. Despite its vast gas reserves and growing production, domestic demand from power plants, households, industry and petrochemical facilities has increasingly strained supplies. Gas shortages during peak periods have forced power generators to rely on diesel and fuel oil, increasing both costs and environmental pressures.

The planned Isfahan solar project therefore carries significance beyond adding electricity to the national grid. Expanded solar generation could free natural gas for other economic uses, reduce reliance on liquid fuels during shortages and diversify Iran’s energy mix. Iran’s solar potential is particularly strong across its central and eastern regions, while the country’s renewable power capacity has already surpassed 5,800 megawatts this month, up from around 1,250 megawatts two years ago, marking a more than fourfold increase and highlighting the accelerating shift toward renewable energy.