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The competitiveness of wind power compared to existing methods of electricity generation in Iran

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  • Moslem Mousavi, Sayed
  • Bagheri Ghanbarabadi, Morteza
  • Bagheri Moghadam, Naser

Abstract

In Iran, there are more than 15,000MW of wind power potential, but only about 90MW have been installed since 2009. Because fuel costs are the main part of fuel-consumed power generation costs and fossil resource costs are highly subsidized in Iran, renewable energies such as wind power have yet to be fully developed. This analysis sets out to evaluate the total generating costs of wind power and conventional power plants in Iran. A levelized cost approach was conducted that included investment costs, O&M costs, fuel costs and external costs of emissions for each type of technology. Comparison of cost assessments of power generation show that by taking into account global fuel prices and incorporating air pollutant externalities, wind power can be as competitive as conventional power plants. This paper suggests that a subsidies targeting law would significantly affect the development of the Iranian wind power industry in the future.

Suggested Citation

  • Moslem Mousavi, Sayed & Bagheri Ghanbarabadi, Morteza & Bagheri Moghadam, Naser, 2012. "The competitiveness of wind power compared to existing methods of electricity generation in Iran," Energy Policy, Elsevier, vol. 42(C), pages 651-656.
    • Handle: RePEc:eee:enepol:v:42:y:2012:i:c:p:651-656
    DOI: 10.1016/j.enpol.2011.12.038
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    Cited by:

    1. Hosseini, Seyed Ehsan & Andwari, Amin Mahmoudzadeh & Wahid, Mazlan Abdul & Bagheri, Ghobad, 2013. "A review on green energy potentials in Iran," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 533-545.
    2. Seyed Reza Mirnezami & Amin Mohseni Cheraghlou, 2022. "Wind Power in Iran: Technical, Policy, and Financial Aspects for Better Energy Resource Management," Energies, MDPI, vol. 15(9), pages 1-18, April.
    3. Morteza Aien & Omid Mahdavi, 2020. "On the Way of Policy Making to Reduce the Reliance of Fossil Fuels: Case Study of Iran," Sustainability, MDPI, vol. 12(24), pages 1-28, December.
    4. Dianat, Fateme & Khodakarami, Vahid & Hosseini, Seyed-Hossein & Shakouri G, Hamed, 2022. "Combining game theory concepts and system dynamics for evaluating renewable electricity development in fossil-fuel-rich countries in the Middle East and North Africa," Renewable Energy, Elsevier, vol. 190(C), pages 805-821.
    5. Firouzjah, Khalil Gorgani, 2018. "Assessment of small-scale solar PV systems in Iran: Regions priority, potentials and financial feasibility," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 267-274.
    6. Mostafaeipour, Ali & Jadidi, Mohsen & Mohammadi, Kasra & Sedaghat, Ahmad, 2014. "An analysis of wind energy potential and economic evaluation in Zahedan, Iran," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 641-650.
    7. Aryanpur, Vahid & Shafiei, Ehsan, 2015. "Optimal deployment of renewable electricity technologies in Iran and implications for emissions reductions," Energy, Elsevier, vol. 91(C), pages 882-893.
    8. Haris Djayadi & Henricus Judi Adrianto & Dini Arifian, 2018. "The Model of Insurance Companies Risk Based Capital," International Journal of Economics and Financial Issues, Econjournals, vol. 8(6), pages 61-64.

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