The Impact of Deregulation on Capacity Growth in Iran Electricity Market by Using System Dynamics Modeling

In the recent decade, Iranian industries initialize to move toward deregulating and reforming their policies in order to reduce or eliminate the government oversight or regulations concerning the conduct of their business, especially on their price policies. The removal and relaxation of these restrictions and government control, could influence the market force and enhance the competition among the companies. Iranian electricity industry as one of the most critical sector of power market after gas, an oil industry, needs such reformations, like the other electricity markets in the world. Although deregulation has not been occurred yet in this sector of industry, increasing rate of demand and exporting this kind of energy to the other countries expose and reflect the necessity of capacity generation and deregulation in this industry, more than before. This paper studies, the impact of deregulation on capacity growth in Iran electricity market by using a system dynamic modeling.

Keywords:

deregulation , capacity growth , power market dynamics and power market instability