Iran's current electricity consumption heavily relies on fossil fuels, with more than 95% coming from these sources, and natural gas alone accounting for about three-quarters of the country's electricity generation. Low-carbon sources, such as hydropower, make up a mere fraction of the mix, barely reaching 3.5%. This heavily skewed reliance on fossil energy raises significant concerns about sustainability and environmental impact, as well as the potential economic risks tied to fluctuating fossil fuel markets and the costs of climate change mitigation.

Is Electricity Growing in Iran?

Regarding growth, Iran's electricity consumption has seen a significant decrease. The most recent data from 2025 indicates a consumption level of 1168 kWh per person, which is a staggering decline of more than 3000 kWh per person from 2024’s record. Not only is there a reduction in total consumption, but low-carbon electricity generation has also plummeted to just 41 kWh per person, down by a noteworthy 436 kWh from previous highs recorded in 2019. Such reductions are concerning and indicate a pressing need for a shift towards sustainable growth to meet future demands and environmental commitments.

Suggestions

To bolster its low-carbon electricity generation, Iran can look to successful models in other regions focused on solar and nuclear power. Notably, the nuclear power approach taken by France and Slovakia, contributing more than 60% of their electricity needs, presents a sustainable path forward that Iran can emulate. Wind power success in Denmark and solar advancements in regions like California and Lebanon, where each makes up roughly a third of their electricity generation, also offer viable routes for Iran. Investment in both nuclear and solar technologies, coupled with policy support, can provide the sustainable growth needed for a cleaner energy future, reducing reliance on fossil fuels while combating climate change and air pollution.

History

Historically, Iran's low-carbon electricity generation through hydro and nuclear sources has been inconsistent. Notable increases in hydroelectric capacity in the early 2000s somewhat stabilized with further growth until the declining years of the 2010s marked by downturns in both hydroelectric and nuclear output. The year 2021 saw a setback with a significant drop in both sectors, particularly criticized for the decline in nuclear output at a time when global energy policies prioritize sustainable and clean electricity sources. Current trajectories show fluctuations, like the steep drop in hydropower in 2025, highlighting the urgency to invest in reliable low-carbon infrastructures such as nuclear and solar to meet future needs.

Electricity Imports and Exports

Balance of Trade