Geothermal energy is generally accepted as being an environmentally benign energy source, particularly when compared to fossil fuel energy sources.
The Sabalan geothermal power plant is planned to produce 50 MW electricity in 2011 in cooperation of the Ministry of Energy (MOE) and Renewable Energy Organization of Iran (SUNA).
The wells drilled during 2002/2003, vary in depth from 2265m to 3197m by NIDC and Pars Technic cooperation. All equipment manufactured by Pars Technic Co. were installed on the wells and two of the wells were successfully discharged hot fluid with enthalpies in the range of 950 to 1000 kJ/kg. A preliminary resource assessment confirms the presence of a geothermal resource with temperatures within the drilled area up to 250 °C and with at least 5 km2 of proven commercially exploitable resource and possible expansion over a likely resource area of 19 km2. A first stage geothermal power development of 50 MW has been committed for commissioning by the end of 2011 according to an engineering feasibility study conducted for assessing possible development options for the field. This will be the first geothermal power development in both Iran and the Middle East. The plan includes drilling more 20 wells (delineation, production, and re-injection) as well as plant construction with allocated total fund of approximately 100 million EURO (Dr. Chitchian, 2008).