The end of Iranian sanctions from the European Union is corresponding with the conclusion of the first phases of smart meter pilot demonstration projects. Combined, these two factors will lead Iran to follow through with a long-planned smart metering program. The national program will follow initial deployments with a nationwide rollout. Even if the program’s ambitious goals are not met, it will still create one of the largest smart meter markets in the region.
Apart from the country’s national smart metering program, there are several other drivers contributing to the expansion of Iran’s smart meter market. Iran is emerging from exclusion from international markets and will be the recipient of increased foreign investment over the coming years, boosting the economy. Subsidized electricity prices are expected to rise as a result of subsidy reform policies. Meanwhile, transmission and distribution (T&D) losses are high, a key motive for the national smart metering program.
Along with the policy and business drivers, there are inherent risks involved in the Iranian smart meter market, stemming mostly from potential instability, both economic and political. Relations between Iran and the West have improved, but US sanctions continue and the threat of future economic sanctions remains. Newly opened for European investment, access to Iran’s smart meter market is, for the time being, still unavailable to US vendors.
Key questions answered in this study:
- How will Iran’s recent re-entry into the global marketplace affect its smart grid markets?
- How large will the smart metering market in Iran be over the next ten years?
- How is Iran’s power industry prepared to implement the national smart metering program?
- Which vendors are already active in Iran and which are eying investment in the near future?
i. Executive summary
1. Iran power sector industry structure
2. Regulatory framework
3. Drivers and barriers
4. Market forecast
5. Smart grid activity
5.1 Deployments completed and in progress
5.2 Upcoming smart meter rollouts
6. Vendor Activity
7.1 List of companies covered in this study
7.2 List of acronyms and abbreviations
List of Figures, Boxes, and Tables:
Iran smart grid: Key takeaways
Iran key stats
Business case drivers comparison
Smart metering and economic timeline
International vendors-access to Iranian smart meter market
AMI market forecast by segment in Iran
AMI market forecast data
Table 1.1: Iran key stats
Figure 1.1: Ownership and hierarchy model
Figure 1.2: Market structure and ownership
Figure 1.3: Fuel portfolio
Table 1.2: Power plant ownership
Table 1.3: Power grid assets
Figure 1.4: Electricity tariffs
Table 1.4: Iranian electric distribution companies (EDC)
Table 1.5: Iranian regional electric companies (REC)
Figure 2.1: National smart metering program governmental structure
Figure 2.2: Goals and benefits of FAHAM
Figure 3.1: GDP growth rate 2008-2020
Figure 3.2: Transmission and distribution losses
Figure 3.3: 2015 engineering graduates by country
Figure 4.1: AMI penetration rate in Iran
Figure 4.2: Annual AMI deployments in Iran
Figure 4.3: AMI market forecast by segment in Iran
Table 4.1: AMI market forecast data
Table 5.1: FAHAM rollout schedule
Figure 5.1: FAHAM rollout schedule
Figure 5.2: Technology field tests in progress
Table 5.2: Mashhad EDC technology field test customers
Box 5.1: Benefits of MEDC deployment
Figure 5.3: Reduction of T&D losses
Figure 5.4: FAHAM Phase 1 smart meter rollouts
Box 5.2: Potential EV capabilities in Iranian smart grid