Wind Power in Iran: Technical, Policy, and Financial Aspects for Better Energy Resource Management
Iran is situated in a wind belt. However, the installed wind capacity in Iran is around 300 MW, which is minuscule compared with the global 651 GW capacity as of 2021. Using novel data from wind trackers across Iran, the paper’s findings show immense potential for wind energy in Iran from a technica...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2022-04-01
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| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/15/9/3230 |
| _version_ | 1797504972069273600 |
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| author | Seyed Reza Mirnezami Amin Mohseni Cheraghlou |
| author_facet | Seyed Reza Mirnezami Amin Mohseni Cheraghlou |
| author_sort | Seyed Reza Mirnezami |
| collection | DOAJ |
| description | Iran is situated in a wind belt. However, the installed wind capacity in Iran is around 300 MW, which is minuscule compared with the global 651 GW capacity as of 2021. Using novel data from wind trackers across Iran, the paper’s findings show immense potential for wind energy in Iran from a technical perspective. While attractive policies are already in place to incentivize wind energy development in Iran, the feed-in tariff (FiT) for wind energy has dropped to around 3 cents per kWh because of the sharp depreciation of the Iranian rial between 2018 and 2020. This paper shows that there is no economic justification for the development of wind farms in Iran at such low FiTs. A minimum FiT of 12 cents per kWh is required to reinvigorate Iran’s wind energy industry investments. Given the extremely tight fiscal space of the Iranian government due to the sanctions and consequently reduced oil exports, the paper argues that a mere 2.14% of Iran’s wasteful fossil fuel subsidies are sufficient to provide a FiT of 12 cents per kWh for wind energy to meet 5% of the country’s total electricity demand. |
| first_indexed | 2024-03-10T04:12:01Z |
| format | Article |
| id | doaj.art-4cbf704ac43d415d9525178a43e1f08b |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T04:12:01Z |
| publishDate | 2022-04-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-4cbf704ac43d415d9525178a43e1f08b2023-11-23T08:08:22ZengMDPI AGEnergies1996-10732022-04-01159323010.3390/en15093230Wind Power in Iran: Technical, Policy, and Financial Aspects for Better Energy Resource ManagementSeyed Reza Mirnezami0Amin Mohseni Cheraghlou1Research Institute for Science, Technology, and Industrial Policy (RISTIP), Sharif University of Technology, Tehran 1458889694, IranDepartment of Economics, American University, Washington, DC 20016, USAIran is situated in a wind belt. However, the installed wind capacity in Iran is around 300 MW, which is minuscule compared with the global 651 GW capacity as of 2021. Using novel data from wind trackers across Iran, the paper’s findings show immense potential for wind energy in Iran from a technical perspective. While attractive policies are already in place to incentivize wind energy development in Iran, the feed-in tariff (FiT) for wind energy has dropped to around 3 cents per kWh because of the sharp depreciation of the Iranian rial between 2018 and 2020. This paper shows that there is no economic justification for the development of wind farms in Iran at such low FiTs. A minimum FiT of 12 cents per kWh is required to reinvigorate Iran’s wind energy industry investments. Given the extremely tight fiscal space of the Iranian government due to the sanctions and consequently reduced oil exports, the paper argues that a mere 2.14% of Iran’s wasteful fossil fuel subsidies are sufficient to provide a FiT of 12 cents per kWh for wind energy to meet 5% of the country’s total electricity demand.https://www.mdpi.com/1996-1073/15/9/3230wind powerfeed-in-tarifffinancial analysisenergy policyIran |
| spellingShingle | Seyed Reza Mirnezami Amin Mohseni Cheraghlou Wind Power in Iran: Technical, Policy, and Financial Aspects for Better Energy Resource Management Energies wind power feed-in-tariff financial analysis energy policy Iran |
| title | Wind Power in Iran: Technical, Policy, and Financial Aspects for Better Energy Resource Management |
| title_full | Wind Power in Iran: Technical, Policy, and Financial Aspects for Better Energy Resource Management |
| title_fullStr | Wind Power in Iran: Technical, Policy, and Financial Aspects for Better Energy Resource Management |
| title_full_unstemmed | Wind Power in Iran: Technical, Policy, and Financial Aspects for Better Energy Resource Management |
| title_short | Wind Power in Iran: Technical, Policy, and Financial Aspects for Better Energy Resource Management |
| title_sort | wind power in iran technical policy and financial aspects for better energy resource management |
| topic | wind power feed-in-tariff financial analysis energy policy Iran |
| url | https://www.mdpi.com/1996-1073/15/9/3230 |
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