Iran Gears Up For Energy Challenges In Face Of Tough Summer

Iran's Energy Minister Ali Akbar Mehrabian has issued a warning about the impending challenges the country faces this summer due to electricity shortages.

Addressing the media regarding the upcoming "extraordinarily challenging summer," Mehrabian claimed “the successful management of significant imbalances” in the power industry over the past two years by utilizing mostly untapped capacities. Despite these efforts, he emphasized the need for “more stringent measures to address the persistent imbalances.”

For several consecutive years, Iran has struggled to meet its annual electricity growth plan, falling behind as a result of rapidly increasing consumption driven by remarkably low prices. The government, which oversees the energy sector, allocates an annual subsidy of up to $60 billion to individuals and businesses.

As summer approaches, the peak demand season due to the need for high energy air conditioning systems, Iran is grappling with a substantial electricity deficit, leading to widespread and prolonged power outages across the nation. To meet the escalating domestic demand, the country requires an annual electricity generation growth of at least 5 to 7 percent.

The primary contributors to the power shortage are the insufficient investments in expanding power generation capacity and natural gas production. The gas sector alone necessitates $40 billion to enhance production and keep pace with demand. Hydro-power plants, facing a significant decline in power generation due to severe droughts, play a significant role in the overall decrease in power generation.

Despite experiencing an average of 300 sunny days annually, Iran's renewable energy sector, particularly wind and solar power, remains underdeveloped, constituting only 0.5% of the total domestically generated power.

Thermal power plants, dominating with a share exceeding 90% in the country's electricity generation, resort to burning billions of liters of polluting mazut and diesel during cold months due to a massive gas deficit. The practice results in severe air pollution, emphasizing the urgent need for sustainable energy solutions.