IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i18p11194-d909033.html
   My bibliography  Save this article

A Business Model for Developing Distributed Photovoltaic Systems in Iran

Author

Listed:
  • Hossein Heirani

    (National Research Institute for Science Policy, No 9, Soheil St., South Shirazi St., Mollasadra Ave., Vanak Sq., Tehran 1435894461, Iran)

  • Naser Bagheri Moghaddam

    (National Research Institute for Science Policy, No 9, Soheil St., South Shirazi St., Mollasadra Ave., Vanak Sq., Tehran 1435894461, Iran)

  • Sina Labbafi

    (Faculty of Modern Science and Technology, University of Tehran, Tehran 1439956191, Iran)

  • Seyedali Sina

    (Faculty of Mechanical Engineering, Shahrood University of Technology, Shahrood 3619995161, Iran)

Abstract

The necessity of increasing the utilization of renewable energies and lowering the dependence on fossil energies for power generation has been increasingly regarded worldwide. Thanks to its desirable solar radiation potential, Iran can lower its level of dependence on fossil fuels for power generation significantly by developing distributed solar photovoltaic (DSPV) systems. The present research began with identifying, through a literature review, relevant business models in terms of ownership and control and the barriers encountered by the PV industry. Continuing with the research, semi-structured interviews were performed with elites in the power industry to explore different barriers hindering the development of DSPV in Iran and weigh them appropriately. Next, according to the elites’ opinions, three business models differing in ownership and control were compared and scored in terms of their ability to address the identified barriers. According to the results, the business model with customer/third party ownership and utility control was identified as the most appropriate business model in Iran. As a final discussion, the business canvas and the roles and associations of all players of this industry in relation to the development of DSPV in Iran were explained.

Suggested Citation

  • Hossein Heirani & Naser Bagheri Moghaddam & Sina Labbafi & Seyedali Sina, 2022. "A Business Model for Developing Distributed Photovoltaic Systems in Iran," Sustainability, MDPI, vol. 14(18), pages 1-21, September.
  • Handle: RePEc:gam:jsusta:v:14:y:2022:i:18:p:11194-:d:909033
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/18/11194/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/14/18/11194/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wee, Hui-Ming & Yang, Wen-Hsiung & Chou, Chao-Wu & Padilan, Marivic V., 2012. "Renewable energy supply chains, performance, application barriers, and strategies for further development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 5451-5465.
    2. Sen, Souvik & Ganguly, Sourav, 2017. "Opportunities, barriers and issues with renewable energy development – A discussion," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1170-1181.
    3. Gautier, Axel & Hoet, Brieuc & Jacqmin, Julien & Van Driessche, Sarah, 2019. "Self-consumption choice of residential PV owners under net-metering," Energy Policy, Elsevier, vol. 128(C), pages 648-653.
    4. Londo, Marc & Matton, Robin & Usmani, Omar & van Klaveren, Marieke & Tigchelaar, Casper & Brunsting, Suzanne, 2020. "Alternatives for current net metering policy for solar PV in the Netherlands: A comparison of impacts on business case and purchasing behaviour of private homeowners, and on governmental costs," Renewable Energy, Elsevier, vol. 147(P1), pages 903-915.
    5. Tianyi Chen & Yaning An & Chye Kiang Heng, 2022. "A Review of Building-Integrated Photovoltaics in Singapore: Status, Barriers, and Prospects," Sustainability, MDPI, vol. 14(16), pages 1-25, August.
    6. Xiang Cai & Meiying Xie & Haijing Zhang & Zhenli Xu & Faxin Cheng, 2019. "Business Models of Distributed Solar Photovoltaic Power of China: The Business Model Canvas Perspective," Sustainability, MDPI, vol. 11(16), pages 1-27, August.
    7. Nolden, C. & Barnes, J. & Nicholls, J., 2020. "Community energy business model evolution: A review of solar photovoltaic developments in England," Renewable and Sustainable Energy Reviews, Elsevier, vol. 122(C).
    8. Steffen, Bjarne, 2020. "Estimating the cost of capital for renewable energy projects," Energy Economics, Elsevier, vol. 88(C).
    9. Xue Zhou & Jianan Shou & Weiwei Cui, 2022. "A Game-Theoretic Approach to Design Solar Power Generation/Storage Microgrid System for the Community in China," Sustainability, MDPI, vol. 14(16), pages 1-21, August.
    10. Luerssen, Christoph & Verbois, Hadrien & Gandhi, Oktoviano & Reindl, Thomas & Sekhar, Chandra & Cheong, David, 2021. "Global sensitivity and uncertainty analysis of the levelised cost of storage (LCOS) for solar-PV-powered cooling," Applied Energy, Elsevier, vol. 286(C).
    11. Shafiei, Ehsan & Saboohi, Yadollah & Ghofrani, Mohammad B., 2009. "Optimal policy of energy innovation in developing countries: Development of solar PV in Iran," Energy Policy, Elsevier, vol. 37(3), pages 1116-1127, March.
    12. Bokrantz, Jon & Skoogh, Anders & Berlin, Cecilia & Stahre, Johan, 2017. "Maintenance in digitalised manufacturing: Delphi-based scenarios for 2030," International Journal of Production Economics, Elsevier, vol. 191(C), pages 154-169.
    13. Huijben, J.C.C.M. & Verbong, G.P.J., 2013. "Breakthrough without subsidies? PV business model experiments in the Netherlands," Energy Policy, Elsevier, vol. 56(C), pages 362-370.
    14. Gabriel, Cle-Anne & Kirkwood, Jodyanne, 2016. "Business models for model businesses: Lessons from renewable energy entrepreneurs in developing countries," Energy Policy, Elsevier, vol. 95(C), pages 336-349.
    15. Tang, Yanyan & Zhang, Qi & Mclellan, Benjamin & Li, Hailong, 2018. "Study on the impacts of sharing business models on economic performance of distributed PV-Battery systems," Energy, Elsevier, vol. 161(C), pages 544-558.
    16. Nóra Hegedűsné Baranyai & Henrik Zsiborács & András Vincze & Nóra Rodek & Martina Makai & Gábor Pintér, 2021. "Correlation Analysis of the Spread of Household-Sized Photovoltaic Power Plants and Various District Indicators: A Case Study," Sustainability, MDPI, vol. 13(2), pages 1-24, January.
    17. Eric O’Shaughnessy & Galen Barbose & Ryan Wiser & Sydney Forrester & Naïm Darghouth, 2021. "The impact of policies and business models on income equity in rooftop solar adoption," Nature Energy, Nature, vol. 6(1), pages 84-91, January.
    18. Martinot, Eric, 1998. "Energy efficiency and renewable energy in Russia: Transaction barriers, market intermediation, and capacity building," Energy Policy, Elsevier, vol. 26(11), pages 905-915, September.
    19. Besarati, Saeb M. & Padilla, Ricardo Vasquez & Goswami, D. Yogi & Stefanakos, Elias, 2013. "The potential of harnessing solar radiation in Iran: Generating solar maps and viability study of PV power plants," Renewable Energy, Elsevier, vol. 53(C), pages 193-199.
    20. Eleftheriadis, Iordanis M. & Anagnostopoulou, Evgenia G., 2015. "Identifying barriers in the diffusion of renewable energy sources," Energy Policy, Elsevier, vol. 80(C), pages 153-164.
    21. Sadorsky, Perry, 2009. "Renewable energy consumption, CO2 emissions and oil prices in the G7 countries," Energy Economics, Elsevier, vol. 31(3), pages 456-462, May.
    22. Yujie Lu & Fangxin Yi & Shaocong Yu & Yangtian Feng & Yujuan Wang, 2022. "Pathways to Sustainable Deployment of Solar Photovoltaic Policies in 20 Leading Countries Using a Qualitative Comparative Analysis," Sustainability, MDPI, vol. 14(10), pages 1-16, May.
    23. Li, Changsheng & Shen, Bo, 2019. "Accelerating renewable energy electrification and rural economic development with an innovative business model: A case study in China," Energy Policy, Elsevier, vol. 127(C), pages 280-286.
    24. Pathak, M.J.M. & Sanders, P.G. & Pearce, J.M., 2014. "Optimizing limited solar roof access by exergy analysis of solar thermal, photovoltaic, and hybrid photovoltaic thermal systems," Applied Energy, Elsevier, vol. 120(C), pages 115-124.
    25. Sepúlveda-Mora, Sergio B. & Hegedus, Steven, 2021. "Making the case for time-of-use electric rates to boost the value of battery storage in commercial buildings with grid connected PV systems," Energy, Elsevier, vol. 218(C).
    26. Krupa, Joel, 2012. "Identifying barriers to aboriginal renewable energy deployment in Canada," Energy Policy, Elsevier, vol. 42(C), pages 710-714.
    27. Reddy, K.S. & Aravindhan, S. & Mallick, Tapas K., 2016. "Investigation of performance and emission characteristics of a biogas fuelled electric generator integrated with solar concentrated photovoltaic system," Renewable Energy, Elsevier, vol. 92(C), pages 233-243.
    28. Zhang, Sufang, 2016. "Innovative business models and financing mechanisms for distributed solar PV (DSPV) deployment in China," Energy Policy, Elsevier, vol. 95(C), pages 458-467.
    29. Hong, Taehoon & Lee, Minhyun & Koo, Choongwan & Jeong, Kwangbok & Kim, Jimin, 2017. "Development of a method for estimating the rooftop solar photovoltaic (PV) potential by analyzing the available rooftop area using Hillshade analysis," Applied Energy, Elsevier, vol. 194(C), pages 320-332.
    30. Engelken, Maximilian & Römer, Benedikt & Drescher, Marcus & Welpe, Isabell M. & Picot, Arnold, 2016. "Comparing drivers, barriers, and opportunities of business models for renewable energies: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 795-809.
    31. Sovacool, Benjamin K., 2009. "The cultural barriers to renewable energy and energy efficiency in the United States," Technology in Society, Elsevier, vol. 31(4), pages 365-373.
    32. Richter, Mario, 2013. "German utilities and distributed PV: How to overcome barriers to business model innovation," Renewable Energy, Elsevier, vol. 55(C), pages 456-466.
    33. Dusonchet, L. & Telaretti, E., 2015. "Comparative economic analysis of support policies for solar PV in the most representative EU countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 986-998.
    34. Peter Boait & J. Richard Snape & Robin Morris & Jo Hamilton & Sarah Darby, 2019. "The Practice and Potential of Renewable Energy Localisation: Results from a UK Field Trial," Sustainability, MDPI, vol. 11(1), pages 1-15, January.
    35. Ellabban, Omar & Abu-Rub, Haitham, 2016. "Smart grid customers' acceptance and engagement: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 1285-1298.
    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. Armin Razmjoo & Arezoo Ghazanfari & Poul Alberg Østergaard & Sepideh Abedi, 2023. "Design and Analysis of Grid-Connected Solar Photovoltaic Systems for Sustainable Development of Remote Areas," Energies, MDPI, vol. 16(7), pages 1-21, March.
    2. Nicholas Mukisa & Ramon Zamora & Tek Tjing Lie, 2022. "Energy Business Initiatives for Grid-Connected Solar Photovoltaic Systems: An Overview," Sustainability, MDPI, vol. 14(22), pages 1-26, November.
    3. Leila Aghlimoghadam & Sadegh Salehi & Hans-Liudger Dienel, 2022. "A Contribution to Social Acceptance of PV in an Oil-Rich Country: Reflections on Governmental Organisations in Iran," Sustainability, MDPI, vol. 14(20), pages 1-23, 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. Horváth, Dóra & Szabó, Roland Zs., 2018. "Evolution of photovoltaic business models: Overcoming the main barriers of distributed energy deployment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 623-635.
    2. Liu, Zhengguang & Guo, Zhiling & Song, Chenchen & Du, Ying & Chen, Qi & Chen, Yuntian & Zhang, Haoran, 2023. "Business model comparison of slum-based PV to realize low-cost and flexible power generation in city-level," Applied Energy, Elsevier, vol. 344(C).
    3. Nicholas Mukisa & Ramon Zamora & Tek Tjing Lie, 2022. "Energy Business Initiatives for Grid-Connected Solar Photovoltaic Systems: An Overview," Sustainability, MDPI, vol. 14(22), pages 1-26, November.
    4. Koerner, Sonja Angelika & Siew, Wei Sian & Salema, Arshad Adam & Balan, Poovarasi & Mekhilef, Saad & Thavamoney, Nisha, 2022. "Energy policies shaping the solar photovoltaics business models in Malaysia with some insights on Covid-19 pandemic effect," Energy Policy, Elsevier, vol. 164(C).
    5. Rövekamp, Patrick & Schöpf, Michael & Wagon, Felix & Weibelzahl, Martin & Fridgen, Gilbert, 2021. "Renewable electricity business models in a post feed-in tariff era," Energy, Elsevier, vol. 216(C).
    6. Shih-Chieh Huang & Shang-Lien Lo & Yen-Ching Lin, 2013. "To Re-Explore the Causality between Barriers to Renewable Energy Development: A Case Study of Wind Energy," Energies, MDPI, vol. 6(9), pages 1-24, August.
    7. Bankel, Amanda & Mignon, Ingrid, 2022. "Solar business models from a firm perspective – an empirical study of the Swedish market," Energy Policy, Elsevier, vol. 166(C).
    8. Xiang Cai & Meiying Xie & Haijing Zhang & Zhenli Xu & Faxin Cheng, 2019. "Business Models of Distributed Solar Photovoltaic Power of China: The Business Model Canvas Perspective," Sustainability, MDPI, vol. 11(16), pages 1-27, August.
    9. Hu, Bo & Zhou, P. & Zhang, L.P., 2022. "A digital business model for accelerating distributed renewable energy expansion in rural China," Applied Energy, Elsevier, vol. 316(C).
    10. Most Asikha Aktar & Mukaramah Binti & Md Mahmudul Alam, 2021. "Green Path Development and Green Regional Restructuring for Sustainable Development," Post-Print hal-03520061, HAL.
    11. Ebrahim Navid Sadjadi & Roemi Fernández, 2023. "Relational Marketing Promotes Sustainable Consumption Behavior in Renewable Energy Production," Sustainability, MDPI, vol. 15(7), pages 1-18, March.
    12. Herbes, Carsten & Brummer, Vasco & Rognli, Judith & Blazejewski, Susanne & Gericke, Naomi, 2017. "Responding to policy change: New business models for renewable energy cooperatives – Barriers perceived by cooperatives’ members," Energy Policy, Elsevier, vol. 109(C), pages 82-95.
    13. Yaqoot, Mohammed & Diwan, Parag & Kandpal, Tara C., 2016. "Review of barriers to the dissemination of decentralized renewable energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 477-490.
    14. F.G. Reis, Inês & Gonçalves, Ivo & A.R. Lopes, Marta & Henggeler Antunes, Carlos, 2021. "Business models for energy communities: A review of key issues and trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    15. Xue, Yan & Lindkvist, Carmel Margaret & Temeljotov-Salaj, Alenka, 2021. "Barriers and potential solutions to the diffusion of solar photovoltaics from the public-private-people partnership perspective – Case study of Norway," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    16. Houda Elmustapha & Thomas Hoppe, 2020. "Challenges and Opportunities of Business Models in Sustainable Transitions: Evidence from Solar Energy Niche Development in Lebanon," Energies, MDPI, vol. 13(3), pages 1-18, February.
    17. Most. Asikha Aktar & Mukaramah Binti Harun & Md. Mahmudul Alam, 2020. "Green Energy and Sustainable Development," Post-Print hal-03518462, HAL.
    18. Li, Changsheng & Shen, Bo, 2019. "Accelerating renewable energy electrification and rural economic development with an innovative business model: A case study in China," Energy Policy, Elsevier, vol. 127(C), pages 280-286.
    19. Ullah, Kafait & Raza, Muhammad Shabbar & Mirza, Faisal Mehmood, 2019. "Barriers to hydro-power resource utilization in Pakistan: A mixed approach," Energy Policy, Elsevier, vol. 132(C), pages 723-735.
    20. Huang, Shih-Chieh & Lo, Shang-Lien & Lin, Yen-Ching, 2013. "Application of a fuzzy cognitive map based on a structural equation model for the identification of limitations to the development of wind power," Energy Policy, Elsevier, vol. 63(C), pages 851-861.

    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:gam:jsusta:v:14:y:2022:i:18:p:11194-:d:909033. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.