Journal of sustainable Energy Systems

Journal of sustainable Energy Systems

Review of the Structure and Operational Mechanisms of Energy Efficiency Revolving Funds: A Survey of Global Experiences and the Status in Iran

Document Type : Review Paper

Authors
Zahra Esmaeili 1
Pegah Pasha 2
Sohrab Amini Velashani 3
Shahriar Jalai 4
1 PhD in Biosystem Mechanics, Researcher, Energy Management Research Group, Niroo Research Institute, Tehran, Iran
2 PhD in Economics, Allameh Tabatabaei University, Tehran, Iran
3 Ph.D. in Power Electrical Engineering, Center of Excellence for Innovation and Technology Development of Energy Consumption Management, Niroo Research Institute, Tehran, Iran
4 Renewable Energy and Energy Efficiency Organization (SATBA), Tehran, Iran
10.22059/ses.2026.411699.1217
Abstract
The development of energy efficiency is one of the key strategies for reducing energy intensity and improving the sustainability of energy supply systems. Achieving this goal requires efficient and sustainable financing mechanisms. Despite the importance of Energy Efficiency Revolving Funds (EERFs), the Persian literature and the Iranian policy context lack a comprehensive analytical and localized framework for designing and implementing such funds. This study adopts a review–analytical and comparative approach to examine the theoretical foundations of revolving funds and analyze the experiences of selected countries, with the aim of extracting lessons applicable to Iran. The findings indicate that the success of these funds depends less on the availability of initial financial resources and more on the existence of an appropriate institutional framework, active participation of the banking sector, transparency in repayment mechanisms, and well-designed legal structures. Furthermore, the analysis of Iran’s current situation shows that existing legal and institutional capacities—particularly the provisions of Article 46 of the Seventh Development Plan—can provide a supportive foundation for establishing an effective revolving fund. However, the absence of a coherent operational structure and a clear implementation model remains a major barrier to fully utilizing this potential. Accordingly, the paper proposes a conceptual framework that emphasizes the integration of institutional reforms, sound financial design, and transparent monitoring mechanisms for the development of energy efficiency revolving funds in Iran.
Keywords
Energy Efficiency Revolving Fund
Energy Efficiency Financing
Energy Intensity
Energy Policy
Iran
Subjects
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Journal of sustainable Energy Systems
Volume 5, Issue 4
Autumn 2026
Pages 845-870