 Challenges of Iran's energy conversion agreements in future competitive marketM.H. Sobhiyah and Y.Kh. Kashtiban Energy Policy, 2008, vol. 36, issue 8, 2836-2839 Abstract: Extensive need for electricity and lack of enough governmental resources for the development of related infrastructures forced the Iranian Government to invite private investors and to sign Energy Conversion Agreement (ECA) in the form of build-operate-transfer (BOT) and build-operate-own (BOO) contracts with them. Accordingly, electricity purchase would be based on a guaranteed price. Changes in some laws in 2007 caused the management of the ECAs and electricity purchase based on guaranteed price to face challenges. Shortening the commercial operation period of the earlier ECAs and signing some new short-term ECAs were the steps taken by the authorities to resolve the problems. By shortening the ECAs' commercial operation period, it is likely to cause serious problems concerning the payments of the project companies, because of shortages in the government's financial resources. The findings of the present viewpoint suggest signing of new long-term contracts (20 years long) in the form of a combinational agreement for buying the produced electricity with a guaranteed price (in the first 5 years) and supplying it in the competitive power market (for the following years) would be a better way to reduce the problems. Date: 2008 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:36:y:2008:i:8:p:2836-2839 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.