This paper studies the impact of setting electric power market on efficiency of the Power Plants in Iran. Doing so, we have calculated and compared the efficiencies of many selected power plants concerning 2003 and 2009. The analytical tools used here have been Data Envelop Analysis technique used by Malamquist efficiency index. The results indicate that the average changes in efficiency index including the weight coefficient and without it for combined cycle and gas turbine power plants were reduced in 2009. Also the index for steam power plants in 2009 was increased. Therefore, that the establishment of the electric power market has positive impact on efficiency of steam power plants but negative effects on other plants efficiency.

In this paper we compare the economic costs and benefits of providing the need of Tehran for electricity through two alternatives, namely transmission of gas or electricity from point of production to Tehran. The basic facts that affect the study are that there is a need to establish a power station to generate the needed electricity for Tehran as the main centre of consumption and that the main centre of gas production is located in Asalooyeh. The basic question to which this study responds is that establishing such power plant in which area between the gas production and electricity consumption centers results in lower costs. In other words, which choice between transmitting electricity and gas is most advantageous for the country.In this paper, different options of gas and electricity transmission between the closest area to the gas production center in Asalooyeh and the closest area to the electricity consumption center in Tehran are studied. Production capacity of the hypothetical power plant is taken as 1000 megawatt with maximum 1200-kilometre distance between the point of production of natural gas and Tehran.The existing electricity and gas networks of the country have been ignored and it is assumed that there is no spare capacity in either electricity or gas transmission lines. The study reviews different options, namely electricity transmission through mono-circuit and bicircuit 230 and 400 kilovolt transmission lines and gas transmission through 28, 30, 48 and 56-inch pipe lines and takes into account loss of electricity due to transmission. The best option to minimize the costs of providing the consumers with electricity in terms of the national economy is the establishment of the power plant close to the gas production center and transmission of electricity to the consumption area.

This paper examines the short-run and long-run relationships between electricity consumption and economic growth in Iran in the supply side model, in the period (1972-2007) also the influence of price liberalization on economic growth and electricity consumption in the demand side model are estimated for the country in the same period. In order to investigate these relationships ARDL bounds test approach is used. The results of supply model suggest a negative unidirectional relationship running from economic growth to electricity consumption in the long-run. We also find a positive and bidirectional relationship between economic growth and electricity consumption in the short-run. The results of demand side model indicate that there are no long-run relationships among electricity price with electricity consumption and economic growth. Therefore electricity consumption in Iran does not necessarily lead to economic growth and liberalization policies of electricity price does not adversely effect on economic growth.