Abstract: . . .  crude oil (as of April 2005). The same is true for electricity tariffs that are subsidised up to a level of 80 percent. • If fuel oil prices would correspond to current prices at the world market, and under specific assumptions for inflation, energy price development and interest rates, all examined cases would be cost-effective and some of them would be very profitable. This is also valid if no capital investment bonus would be paid. The Iranian economy would gain net benefits from investments in solar thermal energy systems. • From a budgetary point of view investments in solar plants would be . . .
. . .  by CEERS and the German Wuppertal Institute for Climate, Environment and Energy in co-operation with the German “Büro Öquadrat” shows exemplarily that such a change is possible. The study is a result of a joint German-Iranian project that was funded by the German Heinrich Böll Foundation. 7 II. Case study: Solar thermal energy in Iran 1. Favourable natural conditions for the use of solar energy Iran has a high amount of renewable energy sources: there are favourable conditions for the profitable use of wind energy, very good opportunities for the extension of water power use as well as an ideal . . .
. . .  opportunities. Using the Clean Development Mechanism (CDM) of the Kyoto Protocol investors from industrialised countries can get CO2 certificates generated through the implementation of solar energy projects. Those certificates can improve the profitability of a project. • The net cost savings by intensified solar thermal energy use could be used to finance at least partly the electrification of those 20,000 rural villages (about 1 million households) in Iran without electrification. Although photovoltaic is currently one of the most expensive ways of producing electricity, it is more cost-effective for . . .
. . .  Using the Clean Development Mechanism (CDM) of the Kyoto Protocol investors from industrialised countries can get CO2 certificates generated through the implementation of solar energy projects. Those certificates can improve the profitability of a project. • The net cost savings by intensified solar thermal energy use could be used to finance at least partly the electrification of those 20,000 rural villages (about 1 million households) in Iran without electrification. Although photovoltaic is currently one of the most expensive ways of producing electricity, it is more cost-effective for the electrification . . .
. . .  than the extension of the grid. • Private investments in technologies with long lifetimes and mid-term payback periods require stable economic conditions, clear objectives for the design of energy policies and the implementation of corresponding policy instruments. Paving the way towards a sustainable energy supply will not be successful without these prerequisites. 19  . . .
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