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Electricity is provided by state-owned power plants which are administered by TAVANIR and affiliated Regional Electric companies, the hydroelectric power plants under the control of the Deputy of Water and Sewage of Ministry of Energy (MoE), private owned power plants, and the Atomic Energy Organization which manages the nuclear power plant in Iran.

Privatization in generation started by contracting Energy Conversion Agreements (ECAs) and continued by developing some Build-Operate-Transfer (BOT) and Build Own Operate (BOO) projects with private investors. In 2013, TAVANIR tendered and sold some of its power plants and increased the share of private electricity generation to 41% of the total installed capacity.