Proposing a Model for the Formation and Development of a Regional Electricity Market with a Focus on Iran

One of the recent developments in power systems in order to increase the competitive environment and gain technical advantages is the expansion of electrical connections among various countries and the development of regional electricity markets. In this situation, the participation of market players is provided in international electricity markets in addition to local markets. In this article, considering the geographical location of Iran, the state of restructuring, the challenges of the production sector, and the increase of energy exchanges, the issue of developing a regional market with neighboring countries centered on Iran has been evaluated. For this purpose, firstly, the electricity industry structure of twelve neighboring countries of Iran with water and land borders has been analyzed and compared. Then, 18 important criteria for determining regional market development priorities have been identified and introduced. In the following, coefficients for different criteria have been assigned with expert survey and entropy methods, and by using SAW, TOPSIS, and Vikor multi-criteria decision-making methods, the priority of countries in connecting to the regional market has been determined. Finally, a comprehensive model for creating a regional market centered on Iran in a twenty-year time horizon has been proposed. The proposed model is divided into five phases with periods of three to five years for market development.