Abstract for: Evaluation of FiT policy effects on sustainable development of renewable energies in Iran; A System Dynamics Approach
Sustainable development of renewable energies is one of the most fruitful solutions that governments use for facing the challenges like GHG emissions, global warming and energy security. Feed in tariffs as an efficient policy that supports the renewable energies development, has been implemented around the world for years. This Policy will be successful if the financial mechanisms work properly. Iran started the implementation of FiT policy from 2015. In this Paper, a System Dynamics model is proposed to evaluate the effect of FiT policy on renewable energy development in Iran. Some sociological effects emanated from financial mechanisms, is taken into consideration in the model of this research for the first time. According to results, It seems that the system have a desirable behavior till 2021. But a financial crises leads to inefficient development will occur after that time. After analyzing the dynamics of system, three policies are proposed and applied to the model. The best policy that results in sustainable development of installed capacity without any negative sociological effect and financial crises is adjusting tax for renewables according to Budget availability.