Iran’s Participatory Power Market Regarding Distributed Generation from Renewable Sources: A Case Study

Abstract

To study initial conditions for participatory power market formation based on renewable energy sources (RES) in Iran after complete accomplishment of the economic evolutionary plan, a case study for a residential building has been conducted to consider the effects of the most important parameters. So, a model of power market including three parts: consumption, production and regulations, has been optimized to achieve to a micro cost effective system of participatory power market regarding distributed generation from RES. The results indicate that the power tariff structure and rates, RES technology capital cost and economic conditions are prominent parameters. As well, to initiate the power market, a revised power tariff structure and rates are suggested; namely, a plan for shifting peak load hours from evening to day hours is essential. Also, it is demonstrated that the policy of establishing a participatory power market included photovoltaic distributed generation systems must be pursued in the economic evolutionary plan with emphasis on development of zero energy cost buildings.