Factors Affecting Electricity Generation from Renewables Energies in Iran

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Alipourian Masoomeh; Samadi Ali Hussein; Hadian Ebrahim; Safavi Ali Akbar; Ostovar Fatemeh

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Journal Paper

Paper Information

Journal: INTERNATIONAL JOURNAL OF NEW POLITICAL ECONOMY Year:2024 | Volume:5 | Issue:2 Page(s): 87-114

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Title

Factors Affecting Electricity Generation from Renewables Energies in Iran

Author(s)

Keywords

Electricity Generation

Renewable and Non-Renewable Energy

Energy Subsidies

E3 Models

Abstract

Due to the existence of abundant sources of non-renewable energy and due to the structure of electricity generation strongly dependent on fossil fuels, Iran is facing challenges such as air pollution, climate change and energy security. However, due to favorable geographical features, Iran has diverse and available renewable resources that provide suitable alternatives to reduce dependence on fossil fuels. Considering the importance of this issue, in this paper, we have investigated "factors affecting electricity generation from renewable energies (RE) in Iran" during the period of 1990-2020 using the system of simultaneous equations in the framework of E3 models. These factors include: electricity generation from non-renewable energies (NRE), energy subsidies (SUB), capacity of renewable power plants (CRPP), technical cooperation grants (TCG) and foreign direct investment (FDI). The results show that making the electricity market competitive through reducing SUB (and thus increasing the price of fossil fuels) leads to an increase in the share of renewable energies in electricity generation. Besides, the increase of CRPP, the allocation of TCG to renewable technologies and the increase of FDI share in development of renewable technologies have positive effects on the expansion of RE.

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