Integrated modeling framework for optimizing energy demand in high energy intensive industries of Iran

Faced with a future decline in domestic oil and natural gas production the Government of Iran decided to develop a long-term energy strategy aimed at the efficient use of energy resources in high energy intensive industries. In this paper, a model of optimal energy demand has been developed´ for industrial sub-sector on the basis of microeconomic theories. The model has then been applied to estimate the optimal energy consumption for 12 high intensive industrial sub-sectors in Iran. The model may be categorized as a linear mathematical programming and the objective function is minimization of cost in given conditions of industrial sub-sectors.