Electric Power, Energy Transition, Natural Gas, Renewables

May 13, 2025

Iran prioritizes underdeveloped solar power amid escalating energy crisis

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HIGHLIGHTS

Rolling blackouts started in spring, affects households

Iran plans 30 GW solar energy in three years

Gas transfer rises 4.7 Bcm, distribution up 4.4%

Iran is turning toward long-delayed solar energy development amid a chronic power shortage escalated by depleted infrastructure, state media reported on May 13.

Unprecedented rolling blackouts started in the spring, with long outages in the household sector ahead of the summer and winter in the new Iranian year that started March 21.

"We are facing an approximately 20 GW imbalance [shortage] ... this has surfaced in years of lack of investment on one side and expansion of distribution networks with the consequent consumption increase on the other side," government spokesperson Fatemeh Mohajerani said in a televised briefing.

Mohajerani pointed to the incremental power outages in the past years and said, "If we cut gas in the winter and electricity in the summer in the industries, there will be nothing called production ... Therefore, instead of the imposition of electricity outage on industries only, it has been executed on the household sector too."

She characterized the power shortage as an "unpleasant reality ... growing bigger."

Production of more than 12.50 GW of hydroelectric power plants has been affected by drought and insufficient rainfall.

The government plans to build 30 GW of solar energy in plants during its remaining three years of administration. To this end, solar panels are being imported to be installed in state buildings whose national electricity supply will be cut off afterward.

Iran's thermal power plants run on kerosene, gasoil and fuel oil. Gas is the primary fuel to produce electricity in most facilities. More than 90% of the country's power plants are categorized as thermal and gas fueled.

From March 2024 to February 2025, gas transfer rose 1.86% year over year, Payman Khazraei, managing director of the National Iranian Gas Transmission Co., said on March 26. Gas distribution rose 4.4% year over year to an average of 876 million cu m/d over Dec. 21, 2024 to Jan. 19, 2025.

Khazraei said the approved amount to be supplied was 845 million cu m/d for the month of Azar, from Nov. 21 to Dec. 20, and 850 million cu m/d for the months of Dey and Bahman, over December 2024 to February 2025.

"But practically, because of a sudden consumption increase ... The delivery was 850 million cu m/d [in Azar] and 863 million and 870 million cu m/d [in Dey and Bahman], respectively," Khazraei added.

                                                                                                               

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