According to the rules, to sign a PPA with SUNA, several permissions shall be obtained. Construction permission is the primary permission issued by SUNA. Environmental permission, permission from Water and Sewage Company, Grid Connection Permission, Cultural Heritage Permission, Gas Permission, Road and Urban Development Permission, Permission from Natural Resources Organization, and Land Permission shall be obtained before signing PPA unconditionally. With respect to local considerations, other unprecedented permissions could be needed before obtaining Land Permission. Land Permission is the most significant permission amongst all the needed permissions. It shall be obtained by renting the land or purchasing the land. After obtaining all the permissions, they should be presented to SUNA. Moreover, Alfa Parameter shall be presented to SUNA. It actually shows that what will be the adjustment parameter as the formula is presented in PPA. After several weeks of consideration by SUNA, the PPA will be signed. From the day that PPA is signed, there will be a fifteen-month-period to construct a PV plant. If it is not connected to the grid by the deadline, SUNA has the authority to cancel the PPA or make an adjustment to the price that it guaranteed to purchase.
It is a well-known fact that solar panels should be located in the area enjoys high solar irradiation throughout the whole year. Moreover, low annual temperature is another significant parameter to increase the output of solar panels since high temperature leads to the declination of the output. Nir district of Yazd Province is one of the best area in Iran to establish PV. With respect to other parameters including wind velocity, shadow effect, faults, and soil mechanics, Kish Solar Trading Co. team decided to locate a 10 MW PV plant in Nir with respect to a substation near the land. The substation has a 10 MW free capacity.
Yazd province is located in the center of Iran. The province has one of the greatest electricity facilities in Iran. There are several noticeably high capacity thermal power plants in the province. However, since Iran is located in a desert region, it suffers from water resources shortage. As many of thermal power plants, either steam turbines or combined cycles, use a lot of water to generate electricity, and also Yazd province imports water from other neighboring provinces such as Isfahan, a PV plant located near consumers with respect to magnificent conditions for establishing PV plants in Yazd province, it could lower the amount of consumed water in the region. In addition, as high peak of electricity consumption in the district is at noon, a PV plant could cope with electricity peak demand. Unfortunately, several power plants must work a few hours every day to confront the peak hours which is just waste of money and work force. Nevertheless, Nir PV plants can easily lower both the cost of production and waste of work force.