The paper presents further experiments with an extended version of a comprehensive model for assessment of energy technologies and research and development (R&D) planning to evaluate the impact of innovation programs on development of Iranian electricity-supply system. This analytical instrument is a model of energy R&D resource allocation with an explicit perspective of developing countries which has been linked to a bottom-up energy-systems model. Three emerging electricity generation technologies of solar PV, wind turbine and gas fuel cell are considered in the model and the impact of innovation programs on cost-reducing innovation for them is examined. The main results provided by the modeling approach include optimal allocation of R&D resources, induced capacity expansion policies to guarantee the effectiveness of R&D activities, competitive cost of emerging technologies, impact of innovation programs on optimal structure of electricity-supply system and benefits of innovation programs in the long-run. (C) 2009 Elsevier Ltd. All rights reserved.