Iran is one of the largest energy consumers and it consumes about 2% of the world's energy with 1% of the world's population. 

    The International Atomic Energy Agency (IAEA) announced that the Iranian government has paid over22 billion dollars subsidies for energy in 2112 

    The number of subsidies paid by Iran is one tenth of the total subsidy paid in the world. 

    Iran is the largest country in the world which gives subsidy for fossil fuel consumption. 

    40% of subsidy paid by the Iranian government in 2012 has been allocated for oil products consumption, 63% for natural gas consumption and 21% for electricity consumption. 

    Iran, in addition to having fossil fuels, is a country with a lot of sunny days, as well as suitable fields for exploiting wind, solar, sea waves, and geothermal energy for the generation of new energies, especially in Chabahar which has the ability to use energy from sea waves and solar energy. Biofuels need to be added to this great potential, which it is applicable with the development of algae production

    Purchase of Electricity and fuel produced in Chabahar will be guaranteed by the Iranian government therefore, provides great opportunity for investors. Currently, Chabahar Free Zone has provided licenses for the creation of small solar power plants and also the development of biofuels. 

    Chabahar Free Zone has allocated 730 hectares of land to create a new energies industrial park and this industrial park will be available to the international investors and or Iran-foreign joint venture.


    Infrastructures and construction


    Area of designated site
    About 730 hectares


    Area of designated site
    Technical & Infrastructure Deputy


    Project description and justification / Objectives


    This project is for the production of energy from the renewable sources. Currently energy production is dependent on fossil fuels. This project is an indicator for reduction of greenhouse gases and, consequently, environmental protection. The geographical location of Chabahar for its proximity to the equator, and having 631 sunny days for year, has created a unique opportunity for the construction of solar industries. The project is intended for 400 megawatts per hour of solar energy. The project is considered to produce 5 million megawatts of solar energy. 

    There are two registered projects with a capacity of 20 megawatts per hour and the excess demand of the free zone will be provided through new investments.



    Investment volume
    Approximate investment: 192 million USD


    Investment method

     a.    Direct foreign and/ or domestic investment

    Participation with the private sector in which the land will be based on long-term lease or participation with the Free Trade Zone Organization in which land and licenses will be the share of the Free Zone.


    How to start the project
    Investors should submit their proposal along with a detailed business plan to the Free Zone authorities and start the project upon confirmation


    Basic requirement

    Potential investors or developers are invited to implement the intended project in the Free Zone by investing and establishing a company.

    These companies will be subject to legal incentives in free zones


    Some incentives available


    a.    Tax exemptions for 20 years 

    b.    Exemption from import duties of machinery and raw materials. 

    c.    Importation of good produced in this park to the mainland is exempt from payment of all or part of customs duties to the " added value " thereof in the Zone.

    Enjoying from all other legal incentives available in the Free Zones.


    Further details


    - To provide sustainable energy needed by the industry 24 hours a day, the need to build a combined cycle power plant with a capacity of 1000 MW is justifiable in a separate design and according to the estimates, the investment required for this project is over 200 million Euros. 

    -The project can be converted to EPCF or Turnkey contracts.

    -the above-mentioned amount is only for preparatory operations. The investment required for the implementation of each designed plant or unit within the park is separate.



    E-mail: info@cfzo.ir

    Tehran office:

     Tel:(+9821) 88879373-4

    Fax:(+9821) 88782520

    Chabahar office:

    Tel:(+9854) 35312200-9

    Fax:(+9854) 35312229

    Website: www.cfzo.ir