Nasrollahi Shahri, Nima (2011): Power market reforms and privatization of the electricity industry in the Iranian energy sector; an uphill struggle?
Download (338kB) | Preview
Following the successful experience of some developed counties in Power market restructuring and reforms, many developing countries have followed suit. Iran has for the last thirty years, since its Islamic revolution of 1979, had an economy dominated by the state, but has been pushed to take some legal steps towards private participation in the electricity sector so as to meet the rapidly rising electricity demand. This paper aims to appraise the stressfulness of Power market restructuring and privatization of electricity industry in Iran. A few years from the commencement of the reforms, the program can be assessed as realistically successful. However, there are plentiful challenges which need to be addressed through legislation. In this study, challenges to competition and Pitfalls of the reforms in the Iranian restructured electricity market will be reviewed. as well as this, a number of recommendations will be offered.
|Item Type:||MPRA Paper|
|Original Title:||Power market reforms and privatization of the electricity industry in the Iranian energy sector; an uphill struggle?|
|Keywords:||Power market restructuring; privatization;Islamic Republic of Iran|
|Subjects:||N - Economic History > N7 - Transport, Trade, Energy, Technology, and Other Services > N70 - General, International, or Comparative
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy
|Depositing User:||Nima Nasrollahi Shahri|
|Date Deposited:||10. Jan 2011 21:07|
|Last Modified:||11. Feb 2013 17:04|
Act of amendment of some provisions of the Fourth Economic, cultural and social Development Plan and application of The General Policies of Article 44 of The Constitution, June 14, 2008, Iran Islamic Parliament.
Determining Method, rate and conditions of Electricity Purchase, Ministerial Directive, Power Ministry 2001, at http://mepc.moe.org.ir/_ippi/Document/asasnameh%20tavanir.pdf http://www.tavanir.org.ir/farsi/nashrieh/mali/82/370714.pdf ( Last visited 25/01/2010).
Fourth Five year economic, cultural and social development plan Act , , Iran Islamic Parliament, September 1, 2004, Fourth Act.
General Policies of Article 44 of the Islamic Republic of Iran Constitution, Exigency Council May 22, 2005.
IGMC Articles of association , Power Ministry at: http://sabainfo.ir/content/media/law/633201092825025000.pdf ( last visited on 25/01/2010)
Islamic Republic of Iran Constitution, ( Constitutional Council of wise experts)1979.
Law of Protection and encouragement of Foreign Investors, Iran Islamic Parliament, March 10, 2002.
TAVANIR Company Articles of Association, Power ministry (January 18, 2003 ) at: http://www.tavanir.org.ir/farsi/nashrieh/mali/82/3509.pdf ( Lat visited 25/01/2010).
Third Five year economic, cultural and social development plan Act Wednesday, April 5, 2000.
2003/2004 Budget Act March 14, 2004, Iran Islamic Parliament.
Bacon, R., Besant-Jones, J., Global electric Power Reform, Privatization and Liberalization of The Electric Power Industry in Developing Countries, at Energy and Mining Sector Board Discussion Paper Series, Paper No 2, June 2002 p. 1.
Bortolotti, B. and Perotti, E From government to regulatory governance: Privatisation and the residual role of the state 22(1) The World Bank Research Observer 53 (2007).
Eberhard, A., the Independence and Accountability of Africa’s Infrastructure Regulators: Reassessing Design and Performance, 4th AFUR ANNUAL CONFERENCE, 25 Apr 2007, Livingston, Zambia.
Haas, R., and Auer, H., The prerequisites for effective competition in restructured wholesale electricity markets, 31 (6–7) Energy857 (2006).
Hulya Dagdeviren, Limits to Competition And Regulation In Privatized Electricity Markets, 80(4) Annals of Public and Cooperative Economics 641 (2009).
Nagayama, H., Effects of regulatory reforms in the electricity supply industry on electricity prices in developing countries,35(6) Energy policy3440(2007).
Newbery, D M., Regulation and competition policy: longer-term boundaries 12 Utilities Polic 93(2004).
Newbery., D., Privatisation, restructuring, and regulation of network utilities, (The MIT Press, Cambridge MA & London, England, 1999).
Surrey(ed), J., The British electricity experiment; the record, the issue and the lessons, (Earthscan publication limited, 1997).
Zhang, Y., Parker, D., Kirkpatrick, C., Competition, regulation and privatisation of electricity generation in developing countries: does the sequencing of the reforms matter? 33 J Regul Econ 159 (2008).
Zhang, Y.-F., Kirkpatrick, C., Parker, D., Electricity sector reform in developing countries: an econometric assessment of the effects of privatization, competition and regulation, centre on regulation and competition. Working Paper Series, no. 31, October (2002).
A report on current conditions of Iran Power Industry; Recommended Policies to Tavanir Co.( In Farsi) at : http://regulatory.moe.org.ir/_DouranPortal/Documents/pres002.ppt ( Last visited on 16/01/2010)
Fateh, A., Privatization in Iranian Electricity Industry( 2003) (In Farsi) at:http://mepc.moe.org.ir/_ippi/Documents/%D8%AE%D8%B5%D9%88%D8%B5%D9%8A%20%D8%B3%D8%A7%D8%B2%D9%8A%20%D8%B5%D9%86%D8%B9%D8%AA%20%D8%A8%D8%B1%D9%82%20%D8%AF%D8%B1%20%D8%A7%D9%8A%D8%B1%D8%A7%D9%86_20090125_150820.pdf ( Last visited 15/01/2010)
Ghazi Zade, M., Javidi, H., Iranian Power Market: History, Reasons and Particulars ( In Farsi) at: http://184.108.40.206/search?q=cache:2-f7vMXtqokJ:regulatory.moe.org.ir/_DouranPortal/Documents/Iran_Power_Market.ppt+%D9%82%D8%A7%D8%B6%DB%8C+%D8%B2%D8%A7%D8%AF%D9%87+%D8%AC%D8%A7%D9%88%DB%8C%D8%AF%DB%8C+filetype:ppt&cd=1&hl=en&ct=clnk ( Last visited 25/01/2010)
Iran Ministry of Power, Goals of Privatization( In Farsi), at: http://www.moe.org.ir/DesktopModules/Articles/ArticlesView.aspx?TabID=0&Site=DouranPortal&Lang=fa-IR&ItemID=942&mid=20014.