IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v71y2014icp679-689.html
   My bibliography  Save this article

Impacts of reforming energy subsidies on small scale generator business in Iran

Author

Listed:
  • Shahverdi, M.
  • Moghaddas-Tafreshi, S.M.
  • Mazzola, Michael S.
  • Kaviani, A.K.

Abstract

Iran had been dedicating a substantial amount of its budget, known as subsidy, to keep the price of natural gas and electricity for customers considerably lower than real cost until 2011. Legislatures passed a law reforming energy subsidy in 2011, but this process is to take five years. Iran ceased to fully-subsidize from 2011, and gradually continues this process through 2015 when no subsidy will be paid. After 2015, the energy price will reach its prime cost. In addition, Tavanir organization, official organization of electrical energy management, published the “contract of guaranteed purchase price of energy for small scale generator”. Based on the contract, the Ministry of Energy guaranties that electricity generated by a small scale generator is purchased at a price higher than market purchase price (http://www.tavanir.org.ir: letter no. 52504/350, October 22, 2008). These two issues, reforming subsidies and incentives for small scale generators' owners, would affect distributed generation areas in terms of operation and investment. This research studies effects of reforming energy subsidy on optimum daily operation of a Fuel Cell Power Plant (FCPP), as an example; however, the results are not only helpful for FCPP but also extendable to some extent to other small scale distributed generators.

Suggested Citation

  • Shahverdi, M. & Moghaddas-Tafreshi, S.M. & Mazzola, Michael S. & Kaviani, A.K., 2014. "Impacts of reforming energy subsidies on small scale generator business in Iran," Renewable Energy, Elsevier, vol. 71(C), pages 679-689.
  • Handle: RePEc:eee:renene:v:71:y:2014:i:c:p:679-689
    DOI: 10.1016/j.renene.2014.06.036
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148114003760
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.renene.2014.06.036?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Niknam, Taher & Meymand, Hamed Zeinoddini & Nayeripour, Majid, 2010. "A practical algorithm for optimal operation management of distribution network including fuel cell power plants," Renewable Energy, Elsevier, vol. 35(8), pages 1696-1714.
    2. Ntziachristos, Leonidas & Kouridis, Chariton & Samaras, Zissis & Pattas, Konstantinos, 2005. "A wind-power fuel-cell hybrid system study on the non-interconnected Aegean islands grid," Renewable Energy, Elsevier, vol. 30(10), pages 1471-1487.
    3. Pandiyan, S. & Elayaperumal, A. & Rajalakshmi, N. & Dhathathreyan, K.S. & Venkateshwaran, N., 2013. "Design and analysis of a proton exchange membrane fuel cells (PEMFC)," Renewable Energy, Elsevier, vol. 49(C), pages 161-165.
    4. Hou, Yongping & Shen, Caoyuan & Yang, Zhihua & He, Yuntang, 2012. "A dynamic voltage model of a fuel cell stack considering the effects of hydrogen purge operation," Renewable Energy, Elsevier, vol. 44(C), pages 246-251.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Huiming & Zheng, Yu & Ozturk, U. Aytun & Li, Shanjun, 2016. "The impact of subsidies on overcapacity: A comparison of wind and solar energy companies in China," Energy, Elsevier, vol. 94(C), pages 821-827.
    2. Chang, Kai & Long, Yu & Yang, Jiahui & Zhang, Huijia & Xue, Chenqi & Liu, Jianing, 2022. "Effects of subsidy and tax rebate policies on green firm research and development efficiency in China," Energy, Elsevier, vol. 258(C).
    3. Saeed Solaymani, 2021. "Energy subsidy reform evaluation research – reviews in Iran," Greenhouse Gases: Science and Technology, Blackwell Publishing, vol. 11(3), pages 520-538, June.
    4. Lin, Boqiang & He, Jiaxin, 2017. "Is biomass power a good choice for governments in China?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 1218-1230.
    5. Aryanpur, V. & Ghahremani, M. & Mamipour, S. & Fattahi, M. & Ó Gallachóir, B. & Bazilian, M.D. & Glynn, J., 2022. "Ex-post analysis of energy subsidy removal through integrated energy systems modelling," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    6. Huan Du & Jian Hu & Huaxuan Wu & Tieshan Li & Lingjuan Chen, 2023. "Analysis of the Threshold Effect of Renewable Energy Industry Subsidies Based on the Perspective of Industry Life Cycle," Sustainability, MDPI, vol. 15(21), pages 1-19, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Haddadian, Hossein & Noroozian, Reza, 2017. "Optimal operation of active distribution systems based on microgrid structure," Renewable Energy, Elsevier, vol. 104(C), pages 197-210.
    2. Hou, Yongping & Shen, Caoyuan & Hao, Dong & Liu, Yanan & Wang, Hong, 2014. "A dynamic model for hydrogen consumption of fuel cell stacks considering the effects of hydrogen purge operation," Renewable Energy, Elsevier, vol. 62(C), pages 672-678.
    3. Vahidinasab, Vahid, 2014. "Optimal distributed energy resources planning in a competitive electricity market: Multiobjective optimization and probabilistic design," Renewable Energy, Elsevier, vol. 66(C), pages 354-363.
    4. Wang, Junye, 2015. "Theory and practice of flow field designs for fuel cell scaling-up: A critical review," Applied Energy, Elsevier, vol. 157(C), pages 640-663.
    5. Zare, Mohsen & Niknam, Taher, 2013. "A new multi-objective for environmental and economic management of Volt/Var Control considering renewable energy resources," Energy, Elsevier, vol. 55(C), pages 236-252.
    6. Su, Guoqing & Yang, Daijun & Xiao, Qiangfeng & Dai, Haiqin & Zhang, Cunman, 2021. "Effects of vortexes in feed header on air flow distribution of PEMFC stack: CFD simulation and optimization for better uniformity," Renewable Energy, Elsevier, vol. 173(C), pages 498-506.
    7. Niknam, Taher & Fard, Abdollah Kavousi & Seifi, Alireza, 2012. "Distribution feeder reconfiguration considering fuel cell/wind/photovoltaic power plants," Renewable Energy, Elsevier, vol. 37(1), pages 213-225.
    8. Duic, Neven & Krajacic, Goran & da Graça Carvalho, Maria, 2008. "RenewIslands methodology for sustainable energy and resource planning for islands," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(4), pages 1032-1062, May.
    9. Zhang, Caizhi & Liu, Zhitao & Zhang, Xiongwen & Chan, Siew Hwa & Wang, Youyi, 2016. "Dynamic performance of a high-temperature PEM (proton exchange membrane) fuel cell – Modelling and fuzzy control of purging process," Energy, Elsevier, vol. 95(C), pages 425-432.
    10. Hakimi, S.M. & Moghaddas-Tafreshi, S.M., 2009. "Optimal sizing of a stand-alone hybrid power system via particle swarm optimization for Kahnouj area in south-east of Iran," Renewable Energy, Elsevier, vol. 34(7), pages 1855-1862.
    11. Won, Jinyeon & Oh, Hwanyeong & Hong, Jongsup & Kim, Minjin & Lee, Won-Yong & Choi, Yoon-Young & Han, Soo-Bin, 2021. "Hybrid diagnosis method for initial faults of air supply systems in proton exchange membrane fuel cells," Renewable Energy, Elsevier, vol. 180(C), pages 343-352.
    12. Giannoulis, E.D. & Haralambopoulos, D.A., 2011. "Distributed Generation in an isolated grid: Methodology of case study for Lesvos - Greece," Applied Energy, Elsevier, vol. 88(7), pages 2530-2540, July.
    13. Niknam, Taher & Kavousi Fard, Abdollah & Baziar, Aliasghar, 2012. "Multi-objective stochastic distribution feeder reconfiguration problem considering hydrogen and thermal energy production by fuel cell power plants," Energy, Elsevier, vol. 42(1), pages 563-573.
    14. Ren, Peng & Pei, Pucheng & Chen, Dongfang & Zhang, Lu & Li, Yuehua & Song, Xin & Wang, Mingkai & Wang, He, 2022. "Corrosion of metallic bipolar plates accelerated by operating conditions in a simulated PEM fuel cell cathode environment," Renewable Energy, Elsevier, vol. 194(C), pages 1277-1287.
    15. Rabbani, Abid & Rokni, Masoud, 2013. "Effect of nitrogen crossover on purging strategy in PEM fuel cell systems," Applied Energy, Elsevier, vol. 111(C), pages 1061-1070.
    16. Gharavi, H. & Ardehali, M.M. & Ghanbari-Tichi, S., 2015. "Imperial competitive algorithm optimization of fuzzy multi-objective design of a hybrid green power system with considerations for economics, reliability, and environmental emissions," Renewable Energy, Elsevier, vol. 78(C), pages 427-437.
    17. Ghaffari, Abolfazl & Askarzadeh, Alireza, 2020. "Design optimization of a hybrid system subject to reliability level and renewable energy penetration," Energy, Elsevier, vol. 193(C).
    18. Niknam, Taher & Meymand, Hamed Zeinoddini & Mojarrad, Hasan Doagou, 2011. "A practical multi-objective PSO algorithm for optimal operation management of distribution network with regard to fuel cell power plants," Renewable Energy, Elsevier, vol. 36(5), pages 1529-1544.
    19. Das, Vipin & Padmanaban, Sanjeevikumar & Venkitusamy, Karthikeyan & Selvamuthukumaran, Rajasekar & Blaabjerg, Frede & Siano, Pierluigi, 2017. "Recent advances and challenges of fuel cell based power system architectures and control – A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 10-18.
    20. Segurado, Raquel & Krajacic, Goran & Duic, Neven & Alves, Luís, 2011. "Increasing the penetration of renewable energy resources in S. Vicente, Cape Verde," Applied Energy, Elsevier, vol. 88(2), pages 466-472, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:71:y:2014:i:c:p:679-689. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.