Electricity restructuring [Business Scene]

The Islamic Republic of Iran currently manages an electricity sector with about 40,000 MW of installed capacity, which serves more than 13 million end users through a 36,000-km high-voltage transmission interconnected grid and a more than 50,000-km medium-voltage distribution network. This fairly large power system with an annual peak demand growth rate of about 10%, one of the highest rates in the world, makes the movement toward restructuring the electricity industry of Iran unavoidable, mainly for two reasons: 1) it is expected that the restructuring and consequently the privatization would improve the performance and efficiency of the present industry 2) it is expected that the development of a new competitive paradigm in the electricity industry could make the sector more attractive for potential independent investors. Based on these ideas, the restructuring studies primarily were begun in early 1990. The studies had two main directions: providing legal foundations and determining the main implementation steps. This article discusses these two directions