Evaluation of Feed-in Tariff in Iran, An Experience from Middle East

Feed-in tariff (FIT) policy is, according to the REN21, the most widely implemented policy tool to promote renewable energies globally. With great potential of renewable energy sources, Iran has decided to use FIT policy to boost private investment in green power plants in the country more than a decade ago. The ultimate goal is to deploy 5 GW of renewable energy by 2020. Accordingly, a 20-year power purchase agreement is offered by Renewable Energy and Energy Efficiency (SATBA) to the potential private investors with pre-specified terms and conditions, taking into account inflation and economic indices. The purpose of this paper is to provide vivid insight about FIT policy for the renewable energy sector in Iran for potential foreign investors and interested academia in the field of energy policy making. After a brief review of Feed-in Tariff policy, the path for establishing a regulatory framework for implementing it in Iran is described in detail. Having evaluated the results of running this policy, potential economic, institutional and political barriers are addressed comprehensively.

Keywords:

Renewable Energy , Energy Policy , Energy Economics , Feed-in Tariff.