An initiative towards an energy and environment scheme for Iran: Introducing RAISE (Richest Alternatives for Implementation to Supply Energy) model

Abstract

Decision making in Iran's energy and environment-related issues has always been tied to complexities. Discussing these complexities and the necessity to deal with them, this paper strives to help the country with a tool by introducing Richest Alternatives for Implementation to Supply Energy (RAISE), a mixed integer linear programming model developed by the means of GNUMathprog mathematical programming language. The paper fully elaborates authors' desired modeling mentality and formulations on which RAISE is programmed to work and verifies its structure by running a widely known sample case named “UTOPIA” and comparing the results with other works including OSeMOSYS and Temoa. The model applies RAISE model to Iranian energy sector to elicit optimal policy without and with a CO2 emission cap. The results suggest promotion of energy efficiency through investment on combined cycle power plants as the key to optimal policy in power generation sector. Regarding oil refining sector, investment on condensate refineries and advanced refineries equipped with Residual Fluid Catalytic Cracking (RFCC) units are suggested. Results also undermine the prevailing supposition that climate change mitigation deteriorates economic efficiency of energy system and suggest that there is a strong synergy between them. In the case of imposing a CO2 cap that aims at maintaining CO2 emissions from electricity production activities at 2012 levels, a shift to renewable energies occurs.