In recent years, the development of the solar energy industry has been highlighted as one of the main solutions for providing clean energy and reducing dependence on fossil fuels. With the approval of Article 16 of the Knowledge-Based Production Leap Law, special government support has been allocated for the development of innovative technologies in this industry. This legal article aims to accelerate the growth of knowledge-based technologies, especially in the field of renewable energy, and can create significant transformation in the production and utilization of solar energy.
Article 16 of the Knowledge-Based Production Leap Law
Article 16 of the Knowledge-Based Production Leap Law was approved to strengthen and develop knowledge-based industries in the renewable energy sector. It aims to expand the market for these industries, produce clean electricity at the consumption site, and help address the country’s electricity imbalance. According to this article, from 2023 onwards, industries consuming more than one megawatt of electricity are required to supply at least 1% of their annual electricity needs through the construction of renewable power plants. This amount must increase to at least 5% by the end of the fifth year of implementing the law. Implementing this article encourages large industries to use sustainable energy resources and significantly reduce environmental pollutants by producing clean electricity.
Penalties for Non-Compliance with Article 16
Failure to comply with the requirements of the Knowledge-Based Production Leap Law subjects industrial units to significant fines. Contrary to some managers’ assumptions, the fines are not calculated based on connection capacity but rather on 1% of the annual electricity consumption of the industrial unit. Additionally, if renewable energy is not used, these units must pay for electricity consumption at the renewable energy tariff rate. This amount is listed on their electricity bills as a fine for non-compliance with Article 16 requirements. For example, the renewable electricity tariff set by SATBA for industrial consumers in December 2024 was announced as 40,762 rials per kilowatt-hour.
Another important point is the potential power outages in industrial towns due to increased energy demand and the lack of renewable energy supply. Power outages during peak hours can cause significant damage to industries. To avoid such fines and damages, constructing a solar power plant with a capacity of at least 1% of annual electricity consumption (5% over five years) is a suitable solution that not only reduces penalty costs but also helps ensure a stable energy supply for industrial units.
Why Do Industries Need to Optimize Their Energy Consumption?
Industries need to optimize their energy consumption to reduce costs, increase efficiency, and minimize environmental impacts. Article 16 of the Knowledge-Based Production Leap Law obliges industries to supply part of their energy needs from renewable sources, encouraging them to manage energy consumption intelligently and use sustainable resources. This not only reduces costs but also plays an effective role in environmental conservation.
Additional Points About Article 16 of the Knowledge-Based Production Leap Law
The Knowledge-Based Production Leap Law was enacted to promote policies supporting solar energy and encouraging industries to use renewable resources. Industries can establish solar power plants even outside their location and benefit from the excess electricity produced in collaboration with the Ministry of Energy. Moreover, it is possible to acquire suitable land for building solar power plants through cooperation with agricultural organizations, the Ministry of Roads and Urban Development, and industrial estates companies in each province. These government facilities help industries take steps towards sustainable energy supply and cost reduction.
Benefits of Constructing Solar Power Plants for Industries
Given the significant rise in energy costs and environmental concerns, industries are seeking ways to secure sustainable and economical electricity. Supporting solar energy policies not only help reduce costs but also create unique opportunities to utilize renewable resources and preserve the environment.
Reducing Greenhouse Gas Emissions
Constructing solar power plants helps industries replace fossil fuels with clean energy, significantly reducing greenhouse gas emissions. This reduction improves air quality, aligns industries with environmental standards, and facilitates sustainable development.
Energy Cost Savings
By complying with Article 16 of the Knowledge-Based Production Leap Law and building solar power plants, industries can produce the required clean and sustainable electricity with lower costs compared to thermal power plants. This energy cost saving reduces long-term operational costs and ensures financial stability and a competitive advantage for industry owners.
Ensuring Energy Security
Solar power plants, by relying on renewable and non-fossil fuel resources, help industries maintain independent energy production from public electricity grids. This energy self-sufficiency protects industries from supply fluctuations and frequent power outages, ensuring productivity and uninterrupted production.
Enhancing Branding
Building solar power plants can enhance industry branding, as the use of clean and renewable energy demonstrates social responsibility and commitment to environmental preservation. This improves brand image, attracts environmentally-conscious customers, and creates a competitive advantage.
Reducing Dependence on Foreign Resources
Solar power plants help industries reduce their reliance on foreign energy sources. By producing domestic energy, industries are protected from price fluctuations and sanctions, achieving energy independence and resilience against crises.
Final Remarks
Adhering to the requirements of Article 16 of the Knowledge-Based Production Leap Law presents a golden opportunity for industries to build solar power plants, ensuring sustainable energy supply and cost reduction while avoiding heavy fines. This move not only preserves the environment but also enhances profitability and energy independence. Contact our specialists at Maxsun for guidance in executing solar projects and benefiting from government facilities. Take the first step towards a greener and more sustainable future today!
