$30 Billion Annual Investment Needed to Address Iran Energy Imbalance

$30 Billion Annual Investment Needed to Address Iran Energy Imbalance
(Wednesday, October 16, 2024) 22:54

TEHRAN (NIPNA) -- Iran requires a minimum annual investment of $30 billion in energy consumption optimization until the end of the 14th administration to overcome the country’s growing energy imbalance, Houshang Falahatian, Deputy Petroleum Minister for Planning, said on Monday.

 

 

Speaking at the International Energy Consumption Optimization Conference, Falahatian highlighted the urgent need to address energy imbalances, which have become a critical challenge for Iran’s economy. He attributed the current energy shortfall to years of inadequate energy management and warned that without significant investment and national cooperation, the situation will worsen despite increased production in future years.

Falahatian outlined several key initiatives aligned with Iran’s Seventh Development Plan, including partnerships with qualified exploration and production companies to develop new gas fields and flare gas recovery projects, emphasizing the need for private sector involvement and investment.

“The main mission of the Ministry of Petroleum is to ensure the stable supply of energy, but overcoming the energy deficit requires a comprehensive approach,” Falahatian said. This approach includes improving energy efficiency and encouraging consumers to reduce their energy use through measures such as energy-saving certifications for households and businesses.

Falahatian also emphasized the need for a shift in Iran’s industrial policy to prioritize high-value, energy-efficient industries. He acknowledged that Iran’s past reliance on cheap energy for energy-intensive industries has contributed to the country's energy intensity, calling for a reevaluation of industrial development strategies to enhance productivity and reduce energy consumption.

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