An introduction to road mapping of power trade development between Iran and its neighbouring countries

During recent decades, developing export and international commerce of electricity have been considered by most countries. This stems from the difference between the final cost of electricity generation and its market price, the price of purchasing electricity from neighbouring countries and also difference in consumption peak in various times of a year. Iran has also tried to develop power exchange with neighbouring countries because of various benefits including saving in initial investments and also in operational costs of power industry. So instead of allocating a major portion of its installed capacity as reserve margin, Iran can utilize other countries capabilities in this regard. Besides, developing power exchange plays a major role in levelizing power supply cost in neighbouring countries and in different times in a year. In this paper, firstly the advantages of the power trade expansion are discussed and then based on the power supply and demand outlook in neighbouring countries of Iran, the required guidelines for power trade development between Iran and its neighbouring countries with some recommendations are presented.