Feasibility Study of Commissioning a Power Capacity Market for High-Consuming Customers in Iran energy Stock

اقتصاد پولی مالی

Article 8, Volume 21, Issue 7, January 2015, Pages 182-209   

Document Type: پژوهشی

DOI: 10.22067/pm.v21i7.43021

Authors

Zeinolabedin Sadeghi^* ; Hamid Reza Amir mahani

Abstract

Today, a good investment in the electricity industry is one of the important
concerns of policy makers and power market authorities; Nowadays power
industry suffers from the long-term fluctuations in the investment sector and
consequently in the power generation capacity. But one of the necessary
measures for preventing instability and volatility of investing in the field of
power capacity is to commission a capacity market.
This study evaluates feasibility of commissioning a capacity market in Iran's
power market, while introducing capacity market and evaluating the
feasibility of investment in the construction of power plant using different
technologies.
Based on the results of this study, combined cycle technology has the lowest
price and the highest price belongs to the solar power plants. Approximately
the cost incurred per kilowatt hour of solar power plant is more than twice
the cost of combined cycle power plant. The increase in the exchange rate
has caused the capacity costs to be almost doubled in both scenarios and this
suggests the importance of the exchange rate in the field of capacity costs
and also in financing the power generation projects. However, such an
increase is different among various technologies.

Keywords

Capacity Market; Power Plant; Investment; Capacity Pricing

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