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Transformation toward a low-carbon sustainable energy system is getting more recognition in oil-rich developing countries under pressure exerted by their growing environmental challenges and international treaties- including UN SDGs. This calls for concerted efforts for developing renewable energy technologies (RETs). In this regard, the current paper examines the historical development of the solar photovoltaic (PV) niche formation in Iran from 1990 to 2020 in two chronological phases, i.e., technological niches and market niches. We adopt strategic niche management framework and highlight the active role of government support should plays as a key prerequisite required for RET niches development in oil-rich developing countries (ORDCs) where market is heavily in favor of fossil sources of energy. Data was gathered through 19 semi-structured interviews as well as PV-related science and technology development activities. We found that while universities and research institutions played a pivotal role in PV technological niche formation, foreign direct investment (FDI) and local firms were instrumental in PV market niche development. Our findings provide recommendations to direct ORDCs in developing PV, which include proper implementation of feed-in tariff policy, enhanced collaboration among international and local actors, integrated and balanced development of the PV value chain, diversified application of PV in the residential and industrial sectors, and lastly, leveraging FDI and joint-ventures as means of promoting local technological capabilities, industrialization, and market expansion. • Renewable niches formation process entails two distinct technological and market phases. • Government support has explanatory power about how renewable niches form. • Government support is crucial for diffusion of renewable niches in oil-rich countries. • International collaborations and investment facilitate renewable niches formation. [ABSTRACT FROM AUTHOR]

Irrefutably, energy transition has recently gathered momentum thanks to the Paris Agreement and renewable energy (RE) falling costs. However, unlocking the full socio-economic potential of energy transition requires encouraging Foreign Direct Investment (FDI) in developing countries where energy demand and the risk of stranded assets are growing. Encouraging FDI in developing countries necessitates addressing two highly controversial issues: measuring political risk and carrying out proper valuation of long-term RE investments. In this regard, current paper investigates the rationale behind classic risk-adjusted discount rate (RADR) approach. It finds that since RADR requires heuristics, it may lead to misrepresentation of real worth of RE projects in developing countries. Addressing this issue, the paper offers a hybrid method based on risk pricing which can incorporate political risk into valuation straightforwardly. The hybrid method is applied to a photovoltaic case in Iran. Surprisingly, while the analysis based on classic RADR approach indicates that the investment is not financially viable, the hybrid analysis demonstrates attractive return on the investment. This can contribute to unlocking a considerable annual amount of 270 TWh solar power in Iran. The empirical study also shows that the suitable rate to discount RE investments in Iran is 10.22%. • Foreign Direct Investment can create a game-changing shift in energy market. • Risks should be reflected in cash flow instead of discount rate. • Sovereign spread is not a good proxy for political risk. • An alternative approach to value renewable energy investments is proposed. • The method can unlock investment in renewables in developing counties. [ABSTRACT FROM AUTHOR]

Abstract This paper investigates the potential of renewable energies utilization in detail through three in-house developed strategies to increase the renewable power generation share until the year 2050 assuming either an optimistic 100% or a practical 50% based on the national policies. Solar, wind, and waste energy are the most feasible alternative energy resources in Iran. In the first strategy, power plants are phased out according to their lifetime and replaced by renewable resources in 5-year time steps. The second strategy employs a 3% replacement rate to reach a 100% renewable power generation in 2050. In the third strategy, the national plan of the power ministry is utilized to adopt a more practical pathway for increasing the renewable power generation share up to 50%. Pollution and water shortage crises are also considered within the framework of this study. The following work can lay the foundation for future studies of its kind in Iran as well as other countries all over the world. Developing the presented results can lead to the practical implementation of the study, which will vastly benefit the residents. Moreover, it will provide a great investment opportunity for foreign and domestic companies working on the field. Highlights • Approach applied to renewable penetration in the power system of Iran. • Three strategies are proposed for transition to 100% renewable. • The storage cost for three scenarios for the year 2050 are calculated. • The storage problem was addressed for various regions of the country. [ABSTRACT FROM AUTHOR]

This paper investigates the relation among energy production, CO 2 emissions and economic growth of Iran with additional variables such as domestic and foreign investment, inflation, population density and agricultural land. Annual time series data is used for the period of 1971–2011 according to data availability. Our main results are as: (1) there is long run relationship among the variables. (2) CO 2 emissions has positive relation with economic growth. (3) energy production has positive effect on the economic growth of Iran. (4) Domestic investment has more contribution than the foreign investment in the explanation of economic growth. (5) Speed of adjustment shows that system will move to equilibrium path quickly. Diagnostic tests confirm the perfectness of the model. DOLS and FMOLS shows the similar results. Further, variance decomposition and cholseky impulse response function also show similar findings. [ABSTRACT FROM AUTHOR]

Abstract: The flows of foreign investment are the fundamental elements in the economical evolution of countries within the globalization process of economy. Previous research on exchange rate shows its significance as a key role in trades and flows of FDI. Although exchange rate and FDI are empirically investigated but the relationship between the volatility of exchange rate and flows of international investments is generally not identified. Therefore, considering the importance of the subject discussed, it is needed to consider the determinants of FDI specially the volatility of exchange rate and provide better situations for attracting FDI in Iran. The main goal of this study is evaluating the determinants of inward FDI particularly volatility of exchange rate in Iran by using the Johansen and Juselius''s cointegration system approach model covering the period 1980Q2-2006Q3. The findings of this study reveal that gross domestic product, openness and exchange rate to have positive relationship with foreign direct investment but, world crude oil prices and volatility of exchange rate have negative relationship with foreign direct investment. The empirical results obtained in this paper recommend the economy Politicians in Iran to implement exchange rate policies that promote stability of exchange rate, which could help reduce exchange rate volatility in order to attract more FDI. [Copyright &y& Elsevier]