In terms of storage, the low installed capacities can be explained by the fact that Iran has a high availability of RE sources, particularly wind energy, solar PV and hydropower, which can produce electricity all-year-round (Fig. 6). The total storage capacities soar from 9.7 TWh in the country-wide scenario to 110.9 TWh in the integrated scenario.
Natural gas has been the main energy resource in Iran so far with a share of 60% of total primary energy consumption in 2013, following by oil with 38%, hydropower with 1–2%, and a marginal contribution of coal, biomass and waste, nuclear power and non-hydro renewables (BP Group 2014; EIA 2015).
By considering the high potential of RE in Iran due to its specific geographical location with the help of designing a flexible and dynamic model, and removing existing obstacles such as dependency on oil and natural gas, it is critical to analyze the economic feasibility of RE in the country.
Energy use in Iran is inefficient mainly due to huge energy subsidies by the government. The country’s energy intensity is 36 and 27% higher than the global average and the Middle Eastern average, respectively (IEA 2016; The World Bank 2014).
Modern biomass, waste-to-energy and geothermal power production are the least exploited energy sources in Iran. However, waste-to-energy projects will become more important. The installed RE capacity in Iran can be seen in Table 2. Table 2 Installed RE capacity in Iran (MW)
SNG production tends to increase the electricity generation of the country to fulfil the growth demand. As Iran’s energy system is currently dominated by domestic natural gas usage, SNG can logically play a significant role in addressing future energy demand.
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