Introduction

In the transition toward a low-carbon economy, Special Economic Zones (SEZs) play a pivotal role as engines of industrial and technological growth, particularly in adopting and expanding clean energy sources. Solar energy, due to its abundance, ease of utilization, and significant cost reductions over the past decade, has become the preferred choice for many SEZs worldwide to secure sustainable and competitive electricity supply (2, 3).

Solar Energy’s Position in Global Special Economic Zones

According to reports from SolarPower Europe and the International Energy Agency’s Photovoltaic Power Systems Program (IEA-PVPS), global installed solar capacity reached over 2.2 terawatts (TW) in 2024, with annual growth outpacing all other energy sources (2). Leading countries like China, India, the UAE, and Singapore have dedicated industrial and energy-focused SEZs, channeling a substantial share of new investments into solar power development. For instance, India’s government policies supporting solar installations in SEZs have reduced industrial energy costs by up to 30% and ensured stable power supply (4).

In African and Southeast Asian SEZs, solar energy has emerged not only as a cost-effective solution but also as a magnet for green investments and an enhancer of international market branding. South Africa’s Coega SEZ, with its 40 MW solar plant, exemplifies how renewable power can satisfy most industrial electricity demand while elevating environmental standards (2).

Innovative Solar Technologies and Competitive Advantages for SEZs

Advances in solar technologies, including tandem panels, bifacial modules, and hybrid energy storage systems, have boosted solar plant efficiencies beyond 25% and reduced the cost of solar electricity generation in many regions to under 2 cents per kilowatt-hour. These technologies are crucial for SEZs that require reliable energy for advanced industries.

Key Benefits of Solar Energy Deployment in SEZs:

• Lower energy costs and enhanced industrial competitiveness
• Reduced pollutants and improved environmental compliance
• Enhanced energy security with less dependence on fossil fuels
• Attraction of international green investments

For example, the Jebel Ali Free Zone Authority (JAFZA) in the UAE has achieved multi-million-dollar energy savings and carbon emission reductions through solar installations on warehouse rooftops.

Global Success Stories of Solar Power in SEZs

SEZ Region Solar Project Highlights Impact

Coega SEZ, South Africa 40 MW solar plant, public-private partnership Major industrial power from renewables, improved environmental standards

JAFZA, UAE  

Rooftop solar installations on industrial facilities Leading green SEZ in the Middle East with significant energy and carbon savings

Mundra SEZ, India

648 MW solar plant by Adani    Supplies industrial and grid power, reduces industrial energy costs by 30%

Jiangsu & Shandong SEZs, China

Renewable energy-specialized SEZs with private-public collaboration     Industrial power supply and export hub for solar equipment

Cost Reduction and Efficiency Gains with Emerging Technologies

• Tandem and perovskite panels enhance conversion efficiency above 25%, reducing upfront costs (2).
• Bifacial panels boost electricity generation by up to 20% by capturing sunlight from both sides (2).
• Hybrid storage systems enable stable power supply during non-sunlight hours, lowering blackout risks and grid dependency (2, 4).
• Smart automation and monitoring reduce operational expenses and maximize plant performance (2).

In many SEZs across China, India, and the UAE, solar electricity costs have fallen below 2 cents per kilowatt-hour, undercutting average grid electricity and significantly increasing industrial competitiveness (2, 4).

Solar Energy Opportunities in the Kashan Special Economic Zone

The Kashan SEZ zoning plan allocates a dedicated 1.04-hectare area for a solar power plant, marking it as a cornerstone of the zone’s sustainable development strategy (2). This plant will not only decrease industrial energy expenses but also enable green certification and export opportunities for environmentally branded products. These initiatives position Kashan SEZ as a frontrunner in clean energy among Iran’s economic zones (2, 3, 4).

Global Challenges and Solutions

While solar deployment in SEZs faces challenges such as high initial investment, smart grid development, and skilled workforce training, successful global strategies include streamlined permitting and land allocation, fiscal incentives, energy storage infrastructure expansion, and partnerships with technology firms and international investors (2, 4).

Conclusion

Emerging solar technologies, by improving efficiency, reducing costs, enhancing sustainability, and facilitating green product exports, are set to define the future of solar power in SEZs. Leveraging these opportunities and learning from global best practices, the Kashan Special Economic Zone can emerge as a national exemplar for clean energy and green industrial development.

References

1. SolarPower Europe, Global Market Outlook for Solar Power 2025-2029
2. Renewable Watch, “Government allows developers of SEZ to deploy solar systems for captive consumption”
3. SEforALL, “Green Industry Special Economic Zones to Catalyze Renewable Energy Manufacturing”
4. IEA-PVPS, Snapshot of Global PV Markets, 2025