Investigation into opportunities and challenges of cross-border electricity trade in Iran

Abstract

Energy demand in Iran is increasing because of many reasons, for instance, low price, population and GDP growth. Its trend shows that this situation could not continue for many years, so it needs reviewing in energy policy in Iran. The aim of this paper is reviewing the whole energy system of Iran and its possible future and offering some policies for solving current and future problems. First of all, this study investigates the trend of growth of some parameters like GDP, electricity price, population, CO2 emission and electricity consumption in eight years. After that, by calculating the price of electricity generated in Iran under three different circumstances, this study is able to investigate the electricity and natural gas trade according to the price of them. Studying the renewable energy effects on CO2 emission reduction, subsidy reduction and water saving lead this study to prepare and policy offer. At the end of this paper, results show there is a lack of idea in energy economic in Iran, and two policies will be offered by considering this aspect.