Electricity market regulations and tariffs impacts on distributed generation in Iran

In Iran, restructuring and privatization in electricity network are in progress. Government planned to double the generation and transmission capacities up to year 2015. It is assumed that distribution generations (DGs) will have a significant influence on network future topology. For approaching such aim a new organization in the Ministry of Energy called "Renewable Energies Organization" (SUNA) has involved in feasibility study and management of renewable energy, which could be the most common type of DGs in Iran. Along with technical development of renewable sources In Iran, tariffs and incentives are established to encourage the application of renewable energy resources, (i.e. 8 cents/kWh for wind energy, compared to 1.62 cents/kWh for conventional power plants) but still, it is required for further steps to extend the development of these kinds of energy resources, (i.e. loan to the investors). In this paper by considering the strategic and geographical status of Iran, some recommendations for promoting distributed generation systems are suggested. Furthermore, by surveying the locations and feasibility studies for electrification, some alternatives are provided.