Iran energy crisis deepens amid harsh winter, power outages
A view of the electric poles as power cuts are occurring across the country, including in the capital, Tehran, Iran on December 19, 2024. (AA Photo)
Iran is grappling with an escalating energy crisis as freezing winter temperatures strain the country’s natural gas and electricity supplies.
Sanctions, outdated infrastructure, and years of underinvestment have compounded the issue, forcing widespread power outages, factory closures, and a shift to online education across many provinces.
Energy crisis strains daily life and economy in Iran
Iran’s President Masoud Pezeshkian recently urged citizens to reduce thermostat settings by 2 degrees Celsius (3.6 degrees Fahrenheit) to conserve energy. Energy Minister Abbas Aliabadi also called on the public to limit fuel consumption to ensure sufficient supply for power plants.
Schools and universities in multiple provinces, including Tehran, Mazandaran, and Kermanshah, have switched to online schooling.
Government offices are operating with reduced hours to limit energy use, and industrial facilities have been forced to halt operations due to gas shortages.
Iranian Vice President for Executive Affairs Mohammad Jaafar Ghaempanah reported that despite a demand of 945 million cubic meters of natural gas daily, the country’s production capacity currently stands at 840 million cubic meters.
Outdated infrastructure and heavy dependence on natural gas
Iran’s reliance on natural gas to generate electricity exacerbates the crisis. Thermal power plants account for about 94% of Iran’s electricity production, with renewable energy contributing a mere 0.6%. Globally, wind and solar energy make up approximately 13% of electricity generation, underscoring Iran’s lag in clean energy development.
According to Tejaratnews, Iran faces a power deficit of around 15,000 megawatts during peak demand, with the aging energy grid struggling to meet the nation’s needs.
Analysts estimate that power outages cost Iran’s economy between $5 billion and $8 billion annually, with manufacturing and industrial operations particularly hard hit.
Factories and industries shut down
The energy shortfall has forced the closure of numerous factories and workshops, with losses estimated to have reduced industrial output by 30% to 50%.
Mehdi Bostanchi, head of the Coordination Council of Industries, described the situation as catastrophic to NYT, noting that small and medium-sized enterprises have been the hardest hit by prolonged power cuts.
“Naturally, the damages from the widespread and abrupt power outage that has lasted all week will be extremely serious for industries,” Mr. Bostanchi said.
State power company Tavanir has warned industries to brace for further energy cuts, with some facilities expecting outages lasting days or weeks.
Geopolitical and Structural Challenges
Despite possessing the world’s second-largest proven natural gas reserves at 34 trillion cubic meters, Iran‘s energy sector remains hamstrung by sanctions, mismanagement, and outdated infrastructure.
Impact on daily life
Ordinary Iranians face unpredictable disruptions in daily life. Residential neighborhoods are subjected to unscheduled power outages lasting hours. Internet connectivity drops during outages, disrupting online education and remote work.
Saeed Tavakoli, head of Iran’s state gas company, revealed that gas supplies to around 73,000 homes have been cut off after authorities identified them as secondary vacation properties.
“The power outage has severely affected daily life and work. When the power goes out, the water is also cut off and the boilers are turned off, and, as a result, all the heating devices are out of order,” said Sephideh, a 32-year-old teacher in Tehran, who said her online English classes are routinely canceled because internet goes out.
Government response and public frustration
In a televised address, President Pezeshkian acknowledged the severity of the crisis.
“We are facing very dire imbalances in gas, electricity, energy, water, money, and the environment. All of them are at a level that could turn into a crisis,” he said.
While officials have promised long-term solutions, immediate measures remain limited to conservation appeals and temporary shutdowns.
