Electricity Consumption In Iran Breaks All-Time Records

Iran’s electricity usage has broken a record to hit 72,500 megawatts – increasing strain on power grids that were already struggling to meet demand.

The constant rise in temperatures and decrease in rainfall across Iran in the last decade have made electricity supply a challenge during peak consumption periods.

According to the IRNA state news agency, the new heatwave began on Saturday, forcing people to use cooling systems which increased the consumption.

On Saturday, Ali Akbar Mehrabian, the Minister of Energy, said: "According to the predictions, we may see a historical record of electricity consumption in the country this week."

Power plant capacity and fuel supply are both inadequate to meet demand, and blackouts regularly happen in summer. Even so, Iran exports electricity to Iraq.

Iran's electricity sector is in dire need of significant investment, and the country has been struggling to attract foreign investment in recent years.

Iran has failed to realize its annual electricity growth plan for several years in a row, while consumption continues to grow, in part driven by extremely low prices. Government funding to the energy sector of up to $60 billion a year effectively provides an indirect subsidy to consumers and businesses fueling this demand.

The country needs at least 5 to 7 percent electricity generation growth annually to address the increase in domestic demand. It has been an ongoing problem for the country which has one of the biggest natural oil and gas reserves in the world. In 2021, mass protests erupted after nationwide blackouts. With current tensions and an ongoing economic crisis, another mass breakdown could revive the unrest which has swept the country since September.