Comparative Analysis of Financing Methods in Thermal Power Plants in Iran

Electricity has been considered as a pivotal product for sustainable development. As Iran has access to the high level of fossil fuel resources, the major proportion of Iranchr('39')s power generation belongs to thermal power plants. In this regard, the issue that all governments have faced is financing the initial capital costs of these projects, which plays a crucial role in providing a continuous electricity supply. In this paper, the most significant criteria and efficient methods of financing thermal power plants in Iran are discussed. A sample of 18 experts working in thermal power plants financing was used and the AHP model is employed to prioritise the efficient financing methods. Results indicate that financing through Islamic bonds (SUKUK) has the highest level of efficiency among funding methods and the applicability of funding source is the most important criterion in choosing the most efficient method of financing for these projects in Iran.