Iranian energy crisis
The Iranian energy crisis is a multifaceted problem that has been exacerbated by a combination of factors, including poor governance, foreign policy failures, and the dominance of industries under the Islamic Revolutionary Guard Corps (IRGC).
As of November 2024 Iran faces its most severe energy crisis in decades, with frequent power outages and disruptions to natural gas supplies.
[11] As of winter 2024 Iran suffers, not for the first time,[6][12] its most severe energy crisis in decades, with frequent power outages and disruptions to natural gas supplies.
[3] The authorities announced widespread closures of schools, universities, and government offices, and shopping centers in the capital Tehran and 17 Iranian provinces to save energy.
Numerous highways and streets have experienced blackouts, including a 24-hour power outage on the critical Haraz road, which connects Tehran to northern cities.
Previous estimates by the Ministry of Energy and the Majlis Research Center indicated that Iran needed to add 5,000 megawatts (7%) to its electricity production annually to avoid shortages.
[23][24] This results in frequent power outages during peak summer and a daily gas deficit of 250 million cubic meters in winter, costing industries at least $8 billion annually.
[23] Economic sanctions over the past two decades have hindered foreign investment in Iran’s energy sector, limiting the development of gas production capacity and power plants.
[26] The regime's pursuit of expanding cryptocurrency mining farms, particularly for Bitcoin, which began to bypass the imposed international sanction has diverted significant amounts of electricity (approximately 600 megawatts) away from the public grid.
[27][28] Iran's energy sector has faced significant mismanagement and corruption in recent years, with the situation worsening since Ebrahim Raisi became president in 2021.
The country, heavily reliant on petroleum revenues, has some of the largest reserves of oil and natural gas in the world, but it struggles with energy shortages due to poor planning, outdated infrastructure, and the impact of international sanctions.
Despite these challenges, Iran's government has failed to modernize its electricity sector, leading to frequent power outages and energy crises throughout the year.
Although the government claims to have increased fuel exports, much of this trade occurs through illegal smuggling networks controlled by the Revolutionary Guards, which operate under the radar of official oversight.
[29][30] A further complication arises from a controversial new privatization plan in the latest budget, which allows military and state-connected entities, such as the General Staff of the Armed Forces, to sell oil and retain the profits.
