Evaluating the impact of economic policies on solar energy growth in Iran

Photovoltaic Renewable energy Policy instruments Techno-economic assessment Sustainable development

Authors

  • Mahshid Noorollahi Faculty of Economics, University of Tehran, Tehran, Iran, Islamic Republic of
  • Shahab Eslami Energy Modelling and Sustainable Energy System (METSAP) Research Lab, School of Energy and Sustainable Energy Resources, College of Interdisciplinary Science and Technologies, University of Tehran, Tehran, Iran, Islamic Republic of
  • Hossein Yousefi
    hosseinyousefi@ut.ac.ir
    Energy Modelling and Sustainable Energy System (METSAP) Research Lab, School of Energy and Sustainable Energy Resources, College of Interdisciplinary Science and Technologies, University of Tehran, Tehran, Iran, Islamic Republic of
  • Arash Shahee School of Energy and Sustainable Energy Resources, College of Interdisciplinary Science and Technologies, University of Tehran, Tehran, Iran, Islamic Republic of
  • Mahmood Abdoos School of Energy and Sustainable Energy Resources, College of Interdisciplinary Science and Technologies, University of Tehran, Tehran, Iran, Islamic Republic of
June 3, 2025

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This paper explores the techno-economic implications of Iranian policy instruments designed to promote large-scale photovoltaic (PV) power plants. As global energy demands rise and environmental concerns intensify, transitioning from conventional fossil fuels to renewable energy sources has become imperative. This study investigates the current state of Iran's electricity market and the effectiveness of its power purchase policies in facilitating PV development. Despite possessing substantial solar energy potential, Iran faces significant challenges, including financial constraints and inconsistent energy policies, which hinder the swift adoption of renewable technologies. The research utilizes a comprehensive approach to assess these barriers and proposes strategic financial solutions to enhance investor confidence and participation in the solar energy sector. Notably, this study contributes to the existing literature by providing a detailed analysis of Iran's unique socio-economic context and its impact on the implementation of renewable energy policy. The findings underscore the necessity for cohesive governmental support and innovative financing mechanisms to unlock Iran's vast solar resources, ultimately paving the way for sustainable energy solutions that align with global carbon neutrality goals.