In 2024, the bulk of Iran's electricity generation heavily relies on fossil fuels, with more than 90% coming from these sources. Natural gas accounts for the highest share at about 85%, while oil makes up for almost 7% of what remains. In stark contrast, low-carbon energy sources contribute to less than 8% of the nation's electricity. Among low-carbon sources, hydropower is the most significant, generating around 6%. Nuclear energy, while essential as a clean energy source, contributes a much smaller portion, nearly 2%. The dominance of fossil energy raises concerns due to its environmental impact, which includes air pollution and climate change.

Data sources used on this page include EIA, Ember and IEA. More about data sources →

Is Electricity Growing in Iran?

Recently, electricity consumption in Iran has seen a slight increase. The country's per capita electricity consumption reached 4245 kWh in 2024, marking a modest growth from the previous year's record of 4226 kWh per person. Despite this increase, the country's low-carbon electricity generation has declined from its earlier peak in 2019, with the latest figure at 335 kWh per person, a decrease of 142 kWh from the 2019 record. This trend is concerning, as Iran needs to prioritize the growth of clean electricity to combat the adverse effects of fossil fuels and to support future energy demands.

Suggestions

To bolster its low-carbon electricity generation, Iran can look to the successes of regions with significant solar and nuclear power. Solar energy, which is underutilized in Iran, could draw inspiration from regions like Nevada and California, where solar power accounts for more than 30% of the electricity mix. Additionally, nuclear energy can be expanded by learning from countries like France and Slovakia, where it contributes over 65% of electricity. Adopting these models could help Iran reduce its fossil fuel reliance and achieve a more sustainable and diversified electricity portfolio, securing a greener future.

History

In terms of historical trends, Iran’s low-carbon electricity generation has fluctuated over the years. During the early 1990s and 2000s, increases in hydropower were recorded, though these gains were offset by subsequent declines. A significant drop occurred in 2008 but was later followed by a sharp dip in 2020. Nuclear energy has seen intermittent growth since its rise in 2013, with notable contributions in 2016. However, a concerning downturn was recorded in 2021. As hydro and nuclear sources show potential for considerable contributions, Iran must focus on stabilizing and expanding these sectors to achieve significant growth in low-carbon energy.

Electricity Imports and Exports

Balance of Trade