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Energy in Iran is characterized by vast reserves of
fossil fuels A fossil fuel is a flammable carbon compound- or hydrocarbon-containing material formed naturally in the Earth's crust from the buried remains of prehistoric organisms (animals, plants or microplanktons), a process that occurs within geologica ...
, positioning the country as a global energy powerhouse.
Iran Iran, officially the Islamic Republic of Iran (IRI) and also known as Persia, is a country in West Asia. It borders Iraq to the west, Turkey, Azerbaijan, and Armenia to the northwest, the Caspian Sea to the north, Turkmenistan to the nort ...
holds the world's third-largest proved oil reserves and the second-largest natural gas reserves as of 2021, accounting for 24% of the
Middle East The Middle East (term originally coined in English language) is a geopolitical region encompassing the Arabian Peninsula, the Levant, Turkey, Egypt, Iran, and Iraq. The term came into widespread usage by the United Kingdom and western Eur ...
's oil reserves and 12% of the global total. In 2020, the Total Energy Supply (TES) in Iran was predominantly derived from natural gas (69%) and oil (29%), with nuclear power and renewable sources contributing only 1% each. Despite the heavy reliance on fossil fuels, Iran possesses significant potential for renewable energy. Due to its geographical location near the equator, 90% of the country's land is suitable for solar power generation for at least 300 days a year. While Iran's energy wealth provides considerable economic opportunities, it also poses challenges. Heavy dependence on oil and gas has resulted in widespread
air pollution Air pollution is the presence of substances in the Atmosphere of Earth, air that are harmful to humans, other living beings or the environment. Pollutants can be Gas, gases like Ground-level ozone, ozone or nitrogen oxides or small particles li ...
and high greenhouse gas emissions. In recent years, Iran has faced a significant
energy crisis An energy crisis or energy shortage is any significant Bottleneck (production), bottleneck in the supply of energy resources to an economy. In literature, it often refers to one of the energy sources used at a certain time and place, in particu ...
driven by a combination of aging infrastructure, mismanagement, and
international sanctions International sanctions are political and economic decisions that are part of diplomatic efforts by countries, multilateral or regional organizations against states or organizations either to protect national security interests, or to protect i ...
. This has resulted in frequent power outages, disruptions in industrial production, and challenges in meeting domestic energy demands. Additionally, the growth of cryptocurrency mining in the country has further strained the electricity grid, exacerbating the crisis. Addressing these challenges is crucial for Iran's energy sector to meet the needs of its growing population and economic ambitions. The crisis in Iran energy sector may indicate also a problem in its reported economic data.


History

Iran is in a constant battle to use its energy resources more effectively in the face of subsidization and the need for technological advances in energy exploration and production. In 2008, energy wastage in Iran amounted to six or seven billion dollars. The energy consumption in Iran is extraordinarily higher than international standards. Iran paid $84 billion in subsidies for oil, gas and electricity in 2008. Iran is one of the most energy-intensive economies of the world, with per capita energy consumption 15 times that of
Japan Japan is an island country in East Asia. Located in the Pacific Ocean off the northeast coast of the Asia, Asian mainland, it is bordered on the west by the Sea of Japan and extends from the Sea of Okhotsk in the north to the East China Sea ...
and 10 times that of
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
. Also due to huge energy subsidies, Iran is one of the most energy inefficient countries of the world, with the energy intensity three times higher than global average and 2.5 times the middle eastern average. In 2014, half of Iran’s energy was wasted in the domestic sector, 3.4 of which is wasted through single-occupancy vehicle use. 2/3 parts of Iranian power plant energy is wasted. Iran is one of the leading members of
OPEC The Organization of the Petroleum Exporting Countries (OPEC ) is an organization enabling the co-operation of leading oil-producing and oil-dependent countries in order to collectively influence the global oil market and maximize Profit (eco ...
(Organization of Petroleum Exporting Countries) and the Organization of Gas Exporting Countries (GECF). In 2008, Iran received $47 billion in oil export revenues, which accounts for about 50% of state revenues.BBC News, “Iran Energy: Overview”, http://news.bbc.co.uk/1/hi/world/middle_east/4688984.stm, April 1, 2008. Natural gas and oil consumption both account for about half of Iran’s domestic energy consumption. With its heavy dependence on oil and gas revenues Iran continues to explore for new sources of natural gas and oil. Since 2009, Iran has focused its energy sector on the exploration of the South Pars offshore natural gas fields in the
Persian Gulf The Persian Gulf, sometimes called the Arabian Gulf, is a Mediterranean seas, mediterranean sea in West Asia. The body of water is an extension of the Arabian Sea and the larger Indian Ocean located between Iran and the Arabian Peninsula.Un ...
.EIA, “Iran’s Energy Data”, , April 1, 2008. Iran has become self-sufficient in designing, building and operating dams and power plants and it has won a good number of international bids in competition with foreign firms. In 2007, energy generation capacity of Iranian thermal power plants reached 173 terawatt hours, accounting for 17.9 percent of energy production in the Middle East and African region. In 2007, Natural gas was the main energy source in Iran, comprising over 55 percent of energy needs, with oil and hydroelectricity accounting for 42 and 2 percent respectively. The region’s energy need will increase by 26.8 percent until 2012. In 2017, the fuel consumption in Iran was equivalent to 5.5 million barrels of fuel per day (bpd), the rate of which is considered as the highest energy consumption rate in the world in terms of energy intensity. Energy plays an important role in Iranian politics. Robert Baer in his 2008 book ''The Devil We Know: Dealing with the New Iranian Superpower'' argued that Iran had attained the status of an energy superpower and was on its way to become a military-political superpower. Iran plans to create an energy saving company in conjunction with the 2014 Iranian subsidy reform plan.


Primary energy sources

Primary energy supply is around two thirds gas and one third oil, with tiny amounts from other sources.


Natural gas

Iran is the world's third producer of
natural gas Natural gas (also fossil gas, methane gas, and gas) is a naturally occurring compound of gaseous hydrocarbons, primarily methane (95%), small amounts of higher alkanes, and traces of carbon dioxide and nitrogen, hydrogen sulfide and helium ...
(5.1% of the world's total and 184 BCM); which is primarily used for domestic
electricity generation Electricity generation is the process of generating electric power from sources of primary energy. For electric utility, utilities in the electric power industry, it is the stage prior to its Electricity delivery, delivery (Electric power transm ...
or heat production. It contains an estimated (Tcf) in proven natural gas reserves. In 2005 a large share of Iran’s
natural gas Natural gas (also fossil gas, methane gas, and gas) is a naturally occurring compound of gaseous hydrocarbons, primarily methane (95%), small amounts of higher alkanes, and traces of carbon dioxide and nitrogen, hydrogen sulfide and helium ...
reserves were believed to remain untapped. About 62% of these reserves are located in non-associated fields. Iranian production of natural gas is expected to increase over the next few years due to continuing discoveries in the North Pars and South Pars regions. Domestic consumption has matched production at in the year of 2005. Domestic consumption is expected to go up at about 7% per year for the following decade. The Iranian government has also subsidized natural gas prices along with
gasoline Gasoline ( North American English) or petrol ( Commonwealth English) is a petrochemical product characterized as a transparent, yellowish, and flammable liquid normally used as a fuel for spark-ignited internal combustion engines. When for ...
prices, and this is expected to sustain this high level of domestic consumption. In lieu of this increasing domestic demand, natural gas exports are expected to decrease in the following years. In 2021, Iran ranked as the world's fourth-largest consumer of natural gas, behind the United States, Russia, and China. A significant share of its natural gas production is utilized domestically in various sectors. Over the last ten years, consumption of natural gas in Iran has risen by approximately 50%, influenced by a range of factors. These include heavily subsidized prices, an extensive distribution network, enhanced domestic production, and government initiatives aimed at replacing oil with natural gas in residential, commercial, and
electric power Electric power is the rate of transfer of electrical energy within a electric circuit, circuit. Its SI unit is the watt, the general unit of power (physics), power, defined as one joule per second. Standard prefixes apply to watts as with oth ...
sectors. Natural gas: * ''production:'' 151.8 billion cu m (2011 est.) * ''consumption:'' 144.6 billion cu m (2010 est.) * ''exports:'' 9.05 billion cu m (2011 est.) * ''imports:'' 10.59 billion cu m (2011 est.) * ''proved reserves:'' 33.61 trillion cu m (1 January 2013 est.)


Oil

Iran has the second largest oil reserves in the world, and the third largest exporter of it. By the end of 2009, Iranian oil R/P ratio was 89.4 years which is the world's highest. By 2009, Iran had 52 active rigs and 1,853 producing oil wells. Iran possesses abundant
fuels A fuel is any material that can be made to react with other substances so that it releases energy as thermal energy or to be used for work. The concept was originally applied solely to those materials capable of releasing chemical energy but ...
from which to generate energy. Since 1913
Iran Iran, officially the Islamic Republic of Iran (IRI) and also known as Persia, is a country in West Asia. It borders Iraq to the west, Turkey, Azerbaijan, and Armenia to the northwest, the Caspian Sea to the north, Turkmenistan to the nort ...
has been a major oil-exporting country. Oil industry output averaged per day in 2005, compared with the peak output of reached in 1974. Following the 1979
revolution In political science, a revolution (, 'a turn around') is a rapid, fundamental transformation of a society's class, state, ethnic or religious structures. According to sociologist Jack Goldstone, all revolutions contain "a common set of elements ...
, however, the government reduced daily oil production in accordance with an oil conservation policy. Further production declines occurred as result of damage to oil facilities during the war with Iraq. In the early 2000s, industry infrastructure was increasingly inefficient because of technological lags. Few exploratory wells were drilled in 2005. Iranian oil was nationalized in 1953 and thus is owned and operated by the National Iranian Oil Company (NIOC). Iran held 10.3% of the world's total proven
oil reserves An oil is any chemical polarity, nonpolar chemical substance that is composed primarily of hydrocarbons and is hydrophobe, hydrophobic (does not mix with water) and lipophilicity, lipophilic (mixes with other oils). Oils are usually flammable ...
and that figures out to be about of oil reserves at the end of 2009. Oil also is found in northern Iran and in the offshore waters of the
Persian Gulf The Persian Gulf, sometimes called the Arabian Gulf, is a Mediterranean seas, mediterranean sea in West Asia. The body of water is an extension of the Arabian Sea and the larger Indian Ocean located between Iran and the Arabian Peninsula.Un ...
. Nevertheless, in 2005 Iran spent US$4 billion on
gasoline Gasoline ( North American English) or petrol ( Commonwealth English) is a petrochemical product characterized as a transparent, yellowish, and flammable liquid normally used as a fuel for spark-ignited internal combustion engines. When for ...
imports, mainly because of
contraband Contraband (from Medieval French ''contrebande'' "smuggling") is any item that, relating to its nature, is illegal to be possessed or sold. It comprises goods that by their nature are considered too dangerous or offensive in the eyes of the leg ...
and inefficient domestic use that result from
subsidies A subsidy, subvention or government incentive is a type of government expenditure for individuals and households, as well as businesses with the aim of stabilizing the economy. It ensures that individuals and households are viable by having acce ...
. Iran is one of the largest gasoline consumers in the world ranking second behind
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
in consumption per car. There is a growing recognition that prices must rise faster to curb consumption and ease the burden on the public finances. Cheap energy has encouraged wasteful consumption in Iran, and a brisk business in smuggling petrol into
Iraq Iraq, officially the Republic of Iraq, is a country in West Asia. It is bordered by Saudi Arabia to Iraq–Saudi Arabia border, the south, Turkey to Iraq–Turkey border, the north, Iran to Iran–Iraq border, the east, the Persian Gulf and ...
,
Turkey Turkey, officially the Republic of Türkiye, is a country mainly located in Anatolia in West Asia, with a relatively small part called East Thrace in Southeast Europe. It borders the Black Sea to the north; Georgia (country), Georgia, Armen ...
,
Pakistan Pakistan, officially the Islamic Republic of Pakistan, is a country in South Asia. It is the List of countries and dependencies by population, fifth-most populous country, with a population of over 241.5 million, having the Islam by country# ...
and
Afghanistan Afghanistan, officially the Islamic Emirate of Afghanistan, is a landlocked country located at the crossroads of Central Asia and South Asia. It is bordered by Pakistan to the Durand Line, east and south, Iran to the Afghanistan–Iran borde ...
. Demand has also been supported by rapid increases in car production in recent years. In the absence of imports, the car industry has developed strongly (albeit from a low base) with output reaching over 1m vehicles in fiscal year 2006/07 (March 21 – March 20). The growth in consumption of domestically produced oil has been modest, owing to refining constraints. By contrast, fuel imports rose to in January 2005 from in 2000, and petrol consumption is estimated to have been around in 2007 (before
rationing Rationing is the controlled distribution (marketing), distribution of scarcity, scarce resources, goods, services, or an artificial restriction of demand. Rationing controls the size of the ration, which is one's allowed portion of the resourc ...
), of which about one-third is imported. These imports are proving expensive, costing the government about US$4bn in the first nine months of 2007/08, according to parliamentary sources. Nearly 40% of refined oil consumed by Iran is imported from
India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...
.Does US road to better relations with Iran pass through India?
''The Christian Science Monitor'', July 18, 2009
Iran contains 27 onshore and 13 offshore oil-producing fields, largely concentrated in the southwestern
Khuzestan Khuzestan province () is one of the 31 Provinces of Iran. Located in the southwest of the country, the province borders Iraq and the Persian Gulf, covering an area of . Its capital is the city of Ahvaz. Since 2014, it has been part of Iran's ...
region near the
Iraq Iraq, officially the Republic of Iraq, is a country in West Asia. It is bordered by Saudi Arabia to Iraq–Saudi Arabia border, the south, Turkey to Iraq–Turkey border, the north, Iran to Iran–Iraq border, the east, the Persian Gulf and ...
i border. The Iranian government is heavily reliant on oil revenues and they have heavily subsidized the energy industries, which figures out to be about 12% of Iran’s GDP. However, domestic oil consumption has decreased due to the alternative use of natural gas. Economic growth from these resources is uncertain and stunted in Iran due to these subsidies and population growth. Iran has been unable to reach it full production levels due to a combination of sanctions and war plaguing the region. Iran’s oil fields have a natural decline rate at 8 percent for onshore wells and 10% for offshore fields. The Iranian recovery rate is currently approximately 27 percent, which is well below the world average. Iran needs structural improvements made to coincide with their
enhanced oil recovery Enhanced oil recovery (abbreviated EOR), also called tertiary recovery, is the extraction of crude oil from an oil field that cannot be extracted after primary and secondary recovery methods have been completely exhausted. Whereas primary and se ...
efforts. Oil: * ''production:'' (2012 est.) * ''consumption:'' (2008 est.) (expected to increase 10% each year since 2006) * ''exports:'' (2010 est.) * ''imports:'' (2010 est.) * ''proved reserves:'' based on Iranian claims (1 January 2009 est.) ''note:'' as of 2009, 1/3 of Iran's gasoline needs are imported because of insufficient domestic refining capacity, over-consumption and
contraband Contraband (from Medieval French ''contrebande'' "smuggling") is any item that, relating to its nature, is illegal to be possessed or sold. It comprises goods that by their nature are considered too dangerous or offensive in the eyes of the leg ...
.


Nuclear energy

Iran plans to generate 23,000 MW of electricity through nuclear technology to meet its increasing demand for energy. The first of four 915 MW reactors of Bushehr Nuclear Power Plant, built with help from
Russia Russia, or the Russian Federation, is a country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...
, came online in August 2010. While nuclear power in the US costs a little over 10 cents per kilowatt hour, Iran, with domestic uranium enrichment capabilities, high interest rates, low energy output (a single 1,000-watt reactor), low efficiency, extremely slow reactor construction, and no reprocessing pays around 68 cents per kilowatt hour (this assumes a price of $140 per separative working unit and of $40 per kilogram of uranium).


Hydro

Droughts have reduced hydropower. The Energy Ministry plans to improve existing plants and build more small and medium hydro.


Biofuel

In 2016, the Iranian Biofuel Society (IBS) in collaboration with the Vice Presidency for Science of Technology and Tehran and the Suburbs Bus Company executed the first urban pilot project for the consumption of waste cooking oil biodiesel in Tehran`s bus fleet in an attempt to generate public awareness regarding ''Global Climate Change'', wherein they recommend “reducing net
anthropogenic Anthropogenic ("human" + "generating") is an adjective that may refer to: * Anthropogeny, the study of the origins of humanity Anthropogenic may also refer to things that have been generated by humans, as follows: * Human impact on the enviro ...
CO2 emissions to the atmosphere” and “minimizing anthropogenic disturbances of” atmospheric gasses by partial replacement of fossil fuels with waste-oriented biofuels. The program was also supported by Small Grant Programme, Global Environmental Facility, United Nation Development Program (SGP/GEF/UNDP) Office in Iran.


Solar

In 2021 there were 450 MW of solar power, less than 1% of installed capacity. This is tiny compared to electricity demand and neighbouring countries. Iran has an average of 2,200 kilowatt-hour
solar radiation Sunlight is the portion of the electromagnetic radiation which is emitted by the Sun (i.e. solar radiation) and received by the Earth, in particular the visible light perceptible to the human eye as well as invisible infrared (typically p ...
per square meter annually, and 90% of the country has enough sun to generate
solar power Solar power, also known as solar electricity, is the conversion of energy from sunlight into electricity, either directly using photovoltaics (PV) or indirectly using concentrated solar power. Solar panels use the photovoltaic effect to c ...
300 days a year.


Wind

In 2020 there were just over 300 MW of wind power, less than 1% of installed capacity. The east is suitable to build more, and wind there matches annual demand variation, being higher in spring and summer.


Geothermal

According to global tectonics Iran is impacted by subduction of the Arabian Plate under the Central Iranian Plate and four thrust faults: two that make the Southern Caspian Sea
Mazandaran Mazandaran Province (; ) is one of the 31 provinces of Iran. Its capital is the city of Sari, Iran, Sari. Located along the southern coast of the Caspian Sea and in the adjacent Central Alborz mountain range and Hyrcanian forests, it is border ...
Depression and two in the north of Iran, part of the Caucasian Range. Mt. Sabalan and Mt. Sahand are two Quaternary Volcanos in the area. Sabalan is a large stratovolcano consisting of 3 summits named Soltan (4811), Heram (4612m) and Kasra (4573m). The stratovolcano is situated on a possible horst trending northeast-southwest and erupted at latest in the Holocene. Caldera collapsing has caused a depression about 400 m in height and 12 km in diameter. The lava flows consists of trachyandesite, andesite and dacite and pyroclastic deposits. There are 9 hot springs with a temperature in the range of 25-85 °C.


Electricity

Iran’s domestic consumption and production have steadily grown together since 1984 and it is still heavily reliant on traditional thermal energy sources of electricity, with a small fraction being produced by
hydroelectric Hydroelectricity, or hydroelectric power, is Electricity generation, electricity generated from hydropower (water power). Hydropower supplies 15% of the world's electricity, almost 4,210 TWh in 2023, which is more than all other Renewable energ ...
plants. As of 2023 a quarter of electricity is generated from oil and most of the rest is gas-fired. In recent years, Iran has put greater emphasis on participation of domestic and foreign investors in electricity generation sector, with projects underway to add 40,000 MWh more capacity to the national grid. It is estimated that some 18.5 percent of electricity generated in Iran are wasted before it reaches consumers due to technical problems. Iran is among the top ten manufacturers of
gas turbine A gas turbine or gas turbine engine is a type of Internal combustion engine#Continuous combustion, continuous flow internal combustion engine. The main parts common to all gas turbine engines form the power-producing part (known as the gas gene ...
s with a capacity of 160 megawatts. Iran has acquired self-sufficiency of over 80 percent in constructing hydraulic turbines and over 90 percent in producing gas turbines. Within the next few years, Iran can join the list of countries that produce
power plant A power station, also referred to as a power plant and sometimes generating station or generating plant, is an industrial facility for the electricity generation, generation of electric power. Power stations are generally connected to an electr ...
technology (2009). Iran has achieved the technical expertise to set up hydroelectric, gas and combined cycle power plants. Iran is not only self-sufficient in power plant construction but has also concluded a number of contracts on implementing projects in neighboring states. The exploration efforts for sources of power generation are wide and diverse in Iran. Plans are being made to make oil efficient power plants as well as an emphasis on natural gas production in order to meet their growing electricity demand.
Nuclear power Nuclear power is the use of nuclear reactions to produce electricity. Nuclear power can be obtained from nuclear fission, nuclear decay and nuclear fusion reactions. Presently, the vast majority of electricity from nuclear power is produced by ...
and hydroelectric power are not focused on for the time being, but they are part of an overall strategy to meet electricity demands. The electricity sector is also heavily subsidized and mostly state owned companies control power distribution, transmission and generation. In order to meet the demands of the electricity sector, however, Iran is beginning to look into private investment. A by-law has been passed allowing the energy ministry to conclude rial or combined rial/foreign-currency contracts for the purchase of electricity from private companies. Iran has displayed a new approach to this sector. After the 1979 Islamic Revolution, the construction of hydroelectric power plants became both a popular private and public venture. Often, construction projects did not meet basic environmental standards, engineering standards, and technical requirements. As a result, many of these dams were destroyed or left in dilapidated conditions. By 2004, the addition of new hydroelectric stations and the streamlining of conventional
coal Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other Chemical element, elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal i ...
- and oil-fired stations increased installed capacity to 33,000 megawatts (MW). Of that amount, about 75 percent was based on
natural gas Natural gas (also fossil gas, methane gas, and gas) is a naturally occurring compound of gaseous hydrocarbons, primarily methane (95%), small amounts of higher alkanes, and traces of carbon dioxide and nitrogen, hydrogen sulfide and helium ...
, 18 percent on oil, and 7 percent on
hydroelectric power Hydroelectricity, or hydroelectric power, is Electricity generation, electricity generated from hydropower (water power). Hydropower supplies 15% of the world's electricity, almost 4,210 TWh in 2023, which is more than all other Renewable energ ...
. However, in 2004 Iran opened its first
wind Wind is the natural movement of atmosphere of Earth, air or other gases relative to a planetary surface, planet's surface. Winds occur on a range of scales, from thunderstorm flows lasting tens of minutes, to local breezes generated by heatin ...
-powered and geothermal plants, and the first solar thermal plant was to come online in 2009. In 2021, Iran produced 341 terawatt-hours (TWh) of net electricity, 94% of which came from fossil fuels. Natural gas was the primary source, accounting for about 81% of electricity generation. Oil’s contribution rose from 9% in 2018 to 14% in 2021, driven by
international sanctions International sanctions are political and economic decisions that are part of diplomatic efforts by countries, multilateral or regional organizations against states or organizations either to protect national security interests, or to protect i ...
that limited oil exports and impacted associated natural gas production, leading to increased domestic use and substitution with diesel and fuel oil in power generation. Additionally, condensate storage capacity constraints hindered non-associated natural gas production, prompting greater reliance on alternative fuels. In response, Iran is upgrading its older natural gas plants to more efficient combined-cycle plants and expanding capacity to reduce hydropower dependency, improve generation efficiency, and increase oil availability for export. It has been estimated that Iran has the potential to produce at least 6,150 MWh of electricity by
wave power Wave power is the capture of energy of wind waves to do useful mechanical work, work – for example, electricity generation, desalination, or pumping water. A machine that exploits wave power (physics), power is a wave energy converter (WEC). W ...
from its coastline on
Persian Gulf The Persian Gulf, sometimes called the Arabian Gulf, is a Mediterranean seas, mediterranean sea in West Asia. The body of water is an extension of the Arabian Sea and the larger Indian Ocean located between Iran and the Arabian Peninsula.Un ...
alone. Iran is also experimenting with electricity generation from organic wastes and plans to build power plants using sewage and organic waste of domestic and industrial origin as fuel. With about 300 clear sunny days a year and an average of 2,200 kilowatt-hour
solar radiation Sunlight is the portion of the electromagnetic radiation which is emitted by the Sun (i.e. solar radiation) and received by the Earth, in particular the visible light perceptible to the human eye as well as invisible infrared (typically p ...
per square meter, Iran has significant potential to tap
solar energy Solar energy is the radiant energy from the Sun's sunlight, light and heat, which can be harnessed using a range of technologies such as solar electricity, solar thermal energy (including solar water heating) and solar architecture. It is a ...
. In 2021, Iran's electricity generation was primarily sourced from natural gas, accounting for 81% of total production. Oil contributed 14%, followed by hydropower at 4%, and nuclear power at 1%. Both coal and non-hydro renewable sources each made up less than 1% of the electricity generation mix. According to a 2022 U.S. Energy Information Administration (EIA) report, Iran has experienced escalating electricity demand driven by factors including illegal cryptocurrency mining, population growth, highly subsidized electricity prices, and fuel supply shortages. This increase in demand has been particularly acute during the peak seasons of summer and winter, putting significant strain on the nation's electrical infrastructure. As a result, Iran encountered notable power shortages in 2020 and 2021. During the summer of 2021, the situation intensified when electricity demand exceeded the available supply by nearly 12 gigawatts (GW).


Subsidies

Iran was estimated to have paid 19% of GDP for energy subsidies in 2019. Iran is the world largest energy subsidizer, leading to highly wasteful consumption patterns, price distortions in its economy, pollution and very lucrative contraband with neighboring countries because of price differentials.


Environment

Air pollution, much of which is from fossil fuels, is estimated to cause nearly 3000 deaths a year in
Tehran Tehran (; , ''Tehrân'') is the capital and largest city of Iran. It is the capital of Tehran province, and the administrative center for Tehran County and its Central District (Tehran County), Central District. With a population of around 9. ...
alone. * ''CO2 emissions per capita:'' 11.9 tonnes (2015 est.) * ''GDP per unit of energy use:'' 4.0 (2007) * ''Energy use per capita (kg of oil equivalent)'' (2005 PPP $ per kg of oil equivalent): 2,352 (2007)


Renewable energy

In 2022 less than 1% of electricity was generated by solar and wind. Iran plans to introduce 10,000 megawatts of renewable electricity into the electricity grid by the end of 2025.


See also

*
Economy of Iran Iran has a mixed economy, mixed, centrally planned economy with a large public sector."A survey of Iran: Stunted and distorted". ''The Economist'' (2003) It consists of hydrocarbon, agricultural and service sectors, in addition to manufacturing ...
* Ministry of Energy (Iran) * Wind power in Iran * Nationalization of the Iranian oil industry * Iran's Gasoline Crisis


References


External links


Ministry of Energy Of Iran
- Official Website
Renewable Energy & Energy Efficiency Organization Of Iran
- Official Website
Ministry of Economic Affairs and Finance Of Iran
- Official Website
Ministry of Industry, Mine & Trade Of Iran
– Official Website
Iran Energy Profile
-
International Energy Agency The International Energy Agency (IEA) is a Paris-based autonomous intergovernmental organization, established in 1974, that provides policy recommendations, analysis and data on the global energy sector. The 31 member countries and 13 associatio ...

Annual Reviews
- Reports by the Central Bank of Iran, including statistics about the energy sector in Iran.
US Department of Energy - Iran
(2003)
Energy Security Implications of an Iran in TransitionTavanir
- Iran's Electric Power Generation Organization
Ahmadinejad's Gas Revolution: A Plan to Defeat Economic Sanctions


(2002)
Solar insolation maps
{{DEFAULTSORT:Energy In Iran