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Subsidy cut and its effect on tehran electricity company: A system dynamics approach

Mehmanchi, E | 2012

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  1. Type of Document: Article
  2. Publisher: 2012
  3. Abstract:
  4. In recent years, subsidy payment has been made a main challenge for governments due to growth of population and energy price in global markets. Targeted subsidy plan has been implemented in Iran since last year, and this article discusses its effects on costs and revenues of Tehran Electricity Company as one of the major subdivisions of Iran's electricity industry. In the new system, structural changes have been made in electricity tariffs, so it is not possible to predict the future trends in electricity consumption only based on the past consumptions. In order to model the decision making structure in the recent conditions, a system dynamics method is applied. In addition to modeling the revenue and cost system of the company, the division of production, i.e. power plant is elaborated by means of state-flow diagram. That is because the company cannot affect consumer's behavior directly and is only able to control the costs for mitigating the problems of instabilities. Based on the obtained results, not only the company faces increased costs in production sector at the beginning of plan implementation, but also the increase will be more significant in the years after the fifth year of plan implementation
  5. Keywords:
  6. Power plant ; Subsidy ; System dynamics ; Cost systems ; Decision-making structure ; Electricity companies ; Electricity industry ; Electricity tariff ; Electricity-consumption ; Future trends ; Global market ; Population and energy ; Production sector ; Structural change ; System dynamics approach ; Computer simulation ; Consumer behavior ; Electric load forecasting ; Electric power generation ; International trade ; Population statistics ; Power plants ; System theory ; Costs
  7. Source: Proceedings of the 2012 - Summer Computer Simulation Conference, SCSC 2012, Part of SummerSim 2012 Multiconference ; Volume 44, Issue 10 , 2012 , Pages 113-120 ; 9781618399847 (ISBN)
  8. URL: https://getinfo.de/de/suchen/id/BLCP%3ACN082297180/Subsidy-Cut-and-Its-Effect-on-Tehran-Electricity