The Economic Feasibility Study of Renovating the Poultry Industry in Iran, with the Objective of Conserving Fuel

While globally there has been a lot of attention paid to increasing energy efficiency following the oil price shock of the 1970’s, oil exporting countries like Iran, benefitting from access to rich energy resources, have not yet done much in this regard. As a result Iran wastes millions of barrels of oil annually due to high energy intensity linked to use of old production structures.This research studies specifically the use of energy in the poultry industry. The study seeks to find a practical solution for the high energy intensity in the Iranian poultry industry through energy conservation to renovate the poultry industry, taking into account suboptimal domestic energy prices and the huge difference between domestic, regional and international energy prices. The study makes use of the two emerging concepts of Energy Service Companies (ESCOs) and Clean Development Mechanism (CDM). The study concludes that renovation of the poultry industry is technically and financially feasible and can pay for itself from savings in energy use. Devising the proposal for funding as a CDM project renders it even more attractive.