Energy in Iran

[3] 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.

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.

[7] In recent years, Iran has faced a significant energy crisis driven by a combination of aging infrastructure, mismanagement, and international sanctions.

This has resulted in frequent power outages, disruptions in industrial production, and challenges in meeting domestic energy demands.

[8] Addressing these challenges is crucial for Iran's energy sector to meet the needs of its growing population and economic ambitions.

Since 2009, Iran has focused its energy sector on the exploration of the South Pars offshore natural gas fields in the Persian Gulf.

[14] 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.

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 sectors.

Nevertheless, in 2005 Iran spent US$4 billion on gasoline imports, mainly because of contraband and inefficient domestic use that result from subsidies.

[31] 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, Turkey, Pakistan and Afghanistan.

[33] Iran contains 27 onshore and 13 offshore oil-producing fields, largely concentrated in the southwestern Khuzestan region near the Iraqi border.

Iran has been unable to reach it full production levels due to a combination of sanctions and war plaguing the region.

[14] Oil:[28] note: as of 2009, 1/3 of Iran's gasoline needs are imported because of insufficient domestic refining capacity, over-consumption and contraband.

[35] Iran plans to generate 23,000 MW of electricity through nuclear technology to meet its increasing demand for energy.

[37] 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).

[41] 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 CO2 emissions to the atmosphere” and “minimizing anthropogenic disturbances of” atmospheric gasses by partial replacement of fossil fuels with waste-oriented biofuels.

[47] The east is suitable to build more, and wind there matches annual demand variation, being higher in spring and summer.

[54] In recent years,[date missing] 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.

[55] It is estimated that some 18.5 percent of electricity generated in Iran are wasted before it reaches consumers due to technical problems.

[58] Iran has achieved the technical expertise to set up hydroelectric, gas and combined cycle power plants.

[citation needed] Iran is not only self-sufficient in power plant construction but has also concluded a number of contracts on implementing projects in neighboring states.

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.

[citation needed] The electricity sector is also heavily subsidized and mostly state owned companies control power distribution, transmission and generation.

[60] 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.

Additionally, condensate storage capacity constraints hindered non-associated natural gas production, prompting greater reliance on alternative fuels.

[27] It has been estimated that Iran has the potential to produce at least 6,150 MWh of electricity by wave power from its coastline on Persian Gulf alone.

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.

In 2010, Iran held 10% of the world's proven oil reserves and 15% of its gas . It is OPEC 's second largest exporter and the world's fourth largest oil producer. [ 1 ] [ 2 ]
Total primary energy consumption in Iran, by fuel, 2015. [ citation needed ]
Iran's gas production 2016, domestic consumption and exports [ citation needed ]
Top oil-producing countries, 1973 to 2016, million barrels per day
Iran oil production, domestic consumption and exports [ citation needed ]
A 2003 USGS map of countries where oil is located
The IR-40 facility in Arak
Iran electricity production by source [ citation needed ]
Energy consumption in Iran is 6.5 times that of global average. [ 50 ] It is estimated that 18.5% of electricity generated in Iran is wasted before it reaches consumers due to technical problems. Electric power wastage hit $1.1 billion in 2006. [ 51 ]
Shazand power plant
The Karun-3 dam & hydroelectric power plant in Iran was commissioned in 2005. Iran has emerged as one of the world's largest dam builders in recent years. [ 51 ]
Iran is one of the largest CO2 polluters, both nationally and per person. [ 67 ]
As a further drive toward diversification of energy sources, Iran has established wind farms in several areas, this one near Manjeel .