International Journal of Industrial Engineering & Production Management

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Energy has significant role in socio-economic development of counties any decision on energy sector may affect the broad area in societies. System approach in energy modeling as an efficient method is known by many researchers in management and planning in a country particularly in energy sector. Also System Dynamics is one of the efficient methods, because it has unique abilities. Hence, in this paper applied this method to analyzing effects of energy price changes at industrial section. At first, effective factors on energy consumption were identified consider related papers with industrial energy demand in literature, that these are such as energy price, energy intensity, added value, production and applied technology at production appliances. Then effects of these factors are have described by related equations, that major equation are explained to clarifying. At following, for validation the results of simulation for energy consumption are compared with the actual data for years 2000-2006. After, different scenarios in energy price have defined and for energy consumption and intensity energy are simulated and analyzed until 2020 for different scenarios.

Keywords: System Dynamics, Energy consumption, Industrial sector, Energy price, Energy intensity.

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