Electricity in Iran in 2023/2024

Over the past year, from September 2023 to August 2024, electricity consumption in Iran has been predominantly dependent on fossil fuels, with these traditional energy sources accounting for a whopping 94% of total electricity production. Notably, gas makes up the majority of this share, standing at nearly 81%. In contrast, low-carbon energy sources, which are critical for reducing environmental impact and advancing sustainable energy solutions, contribute just over 5% to the country's electricity generation. This clean energy segment is entirely comprised of hydropower. The stark contrast between the overwhelming reliance on fossil fuels and the minimal contribution of low-carbon sources underscores the urgent need for diversification towards greener, more sustainable electricity production in Iran.

Suggestions

To boost its low-carbon electricity generation, Iran could take inspiration from various successful international models focusing on nuclear, wind, and solar energy. Developing a robust nuclear power infrastructure could significantly enhance Iran's clean energy portfolio, as seen in France, where nuclear energy contributes to 68% of its electricity. Similarly, Ukraine demonstrates that nuclear power can supply over half of a country's electricity needs. Besides, investing in wind, as Denmark has done, where wind energy accounts for 59% of electricity, could be another strategic option for Iran. Iran's geographic and climatic conditions make it suitable for solar power as well, drawing parallels from countries like Greece and the United Arab Emirates, both of which have effectively integrated low-carbon sources.

History

Tracing the history of low-carbon electricity in Iran, hydropower has seen a dynamic trajectory since the early 1990s. The early '90s witnessed moderate emphasis on hydropower, with a notable 3.6 TWh increase in 1992. However, this was followed by a series of declines in the late '90s, particularly in 1994 and 1997. The 2000s experienced a mix of expansions and contractions, with significant boosts in 2002 and 2006 countered by declines like the substantial 10.5 TWh drop in 2008. The 2010s highlighted sporadic growth in nuclear energy, especially with a 2.8 TWh increase in 2013 and healthy growth in subsequent years before a 2.8 TWh setback in 2021. Hydropower also saw a sharp 24 TWh rise in 2019, reflecting potential that remains tempered by fluctuations, including the recent increase of 8.6 TWh in 2023. This historical analysis emphasizes the importance of a stable, strategic approach to fostering low-carbon electricity generation in Iran.

Electricity Imports and Exports

Balance of Trade

Data Sources