Iranian energy crisis

The Iranian energy crisis is a multifaceted problem that has been exacerbated by a combination of factors, including bad governance, foreign policy failures, and the dominance of industries under the Islamic Revolutionary Guard Corps (IRGC). As of November 2024 Iran is currently facing its most severe energy crisis in decades, with frequent power outages and disruptions to natural gas supplies. The country's energy infrastructure is outdated and in disrepair, with many refineries and power plants operating below capacity.Iran's energy supply is unreliable, with frequent blackouts and shortages affecting daily life, industries, and essential services.The crisis has also led to environmental degradation and air pollution due to the burning of fossil fuels like mazut.The IRGC's control over key industries, including power generation and distribution, has hindered efficient management and strategic planning.The regime's prioritization of political and economic interests over efficient management and infrastructural development has exacerbated the crisis.

Despite ongoing power shortages, Iran continues to export electricity, with a surge of nearly 92% in the first four months of 2023 compared to the same period in 2022.

Energy consumption

Iran's electricity consumption is distributed across various sectors, with 33% used in residential areas, 34% in industries, and 14% in agriculture. The regime's pursuit of expanding cryptocurrency mining farms, particularly for Bitcoin, has diverted significant amounts of electricity (approximately 600 megawatts) away from the public grid.Daily natural gas consumption is equivalent to 5 million barrels of oil, with a total consumption of approximately 6.8 million barrels (oil equivalent) per day.

Iranian fuel prices

In December 2024 it was reported that gas prices would be increased, this in turn caused housing market prices to rise. The energy crisis has resulted in significant economic losses for Iranian industries, with a reported $7 billion loss in 2022 due to gas and electricity shortages.

Reactions

A state commission for energy crisis has been suggested to be formed.

In December 2024 the government shutdown schools and offices to alleviate shortages. The government began supplying solar panels for their buildings until summer 2025.