Factors Affecting Electricity Generation from Renewables Energies in Iran

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

doi:10.48308/jep.5.2.87

Factors Affecting Electricity Generation from Renewables Energies in Iran

Document Type : Original Article

Authors

¹ Department of Economics, Shiraz University,Shiraz, Iran

² School of Electrical and Computer Engineering, Shiraz University,Shiraz, Iran

³ School of Electrical and Computer Engineering, Shiraz University, Shiraz, Iran

10.48308/jep.5.2.87

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.

Keywords