There are abundant renewable energy sources in Iran such as wind, solar, geothermal, biomass. However, Iran is fully dependent on fossil fuels for industrial, residential and transportation sectors. It results in the country to be in top 10 producers of greenhouse gases (GHGs) into the atmosphere. GHGs can be controlled by incorporating renewable sources to produce energy. Therefore, renewable energy resources are becoming more attractive to develop sustainable energy development in Iran. However, the transformation from traditional fossil fuel infrastructures to advanced renewable technologies needs many considerations, such as strategic and core planning. In this regard, this paper covers the current state of Iran's energy market focusing on both fossil fuels and renewable energy resources. A general review is offered over the renewable energy production status in Iran and the production potentials. Finally, in conclusion, a comparisons are made over the current state, plans and also potential opportunities of Iran over each sort of energy production.