Under domination of oil and gas: future scenarios of renewable energy development in Iran

Abstract

Purpose Scenario planning is a useful approach that helps policymakers to better understand the complexity and uncertainties that lie in the future and to choose the right policy mix to support the development of renewable and affordable energy sources. In this regard, this paper aims to present renewable energy (RE) development scenarios in Iran in the horizon of 2030. Design/methodology/approach Following the intuitive logic school and the Global Business Network model, the authors identified seven driving forces, according to the expert’s judgment, by brainstorming techniques which influence REs development in the horizon of 2030. By prioritizing driving forces based on their importance and uncertainty, “sustainable and green economy” and “emerging technology development” are the most instrumental uncertainties and the authors formed a two-axis scenario matrix with each representing an axis. Findings The results suggest four main scenarios of “Transition to Sustainability with Green Gold,” “Towards Sustainability with Green Gold,” “Productivity with Black Gold” and “Desperation with Black Gold.” They include a wide range of possible situations of energy basket in the future ranging from dominance of fossil fuels to dominance of REs. The “Productivity with Black Gold” and the “Towards Sustainability with Green Gold” are the most probable scenarios of RE development by 2030 in Iran. Originality/value This paper indicates that the dominance of oil and gas resources would impede or at least slow down the development of renewable and affordable energy sources. Although the economic and environmental potentials and the inevitability of REs are well-understood, path dependence created by fossil fuels in Iran’s energy regime, either partially or fully, hinders the widespread development of REs which is the case in other resource-based countries as well.