Developing Electric Power Industry Capacity Certificate, an Appropriate Instrument for

Financing is one of the most important challenges in various sectors of economy including electric power industry. Thus, this industry needs financial innovations to design financial institutions and instruments for funding itself. In Iran, developing power industry faces some challenges because it mainly depends on government budget and it lacks enough financial resources for its development proportionate to the electricity consumption growth. Therefore, the Ministry of Power and Energy, as the main policymaking body in electric power industry in Iran, is facing financial resource deficit and is seeking the participation of the private sector for investing in power industry.
One of the necessary requirements for the private sector participation in electric power industry is appropriate financial solutions and instruments that correspond to the electric industry. Capacity certificate is a financial instrument designed for financing electric power industry to enable it to develop new powerhouses. Using descriptive/analytical method and based on Imamiyah jurisprudential School and the regulations of Iran's capital market and the needs of power industry, the financial instrument for capacity certificate is introduced in this paper.