Iran Shifts Energy Policy Away from Gas Dependence, Focuses on Renewables

Iran Shifts Energy Policy Away from Gas Dependence, Focuses on Renewables
(Saturday, December 6, 2025) 13:11

TEHRAN, Nov. 30 (NIPNA) – Iran’s government is pursuing a new approach to energy management, moving away from a gas-centric strategy and emphasizing renewable energy and efficiency measures to address the country’s growing energy imbalance.

Omid Shakeri, Deputy Minister of Petroleum for Engineering, Research, and Technology, said at a joint ministry session on solar power development that the fourteenth government has prioritized simultaneous investment in renewable energy and optimization of existing infrastructure. “The excessive reliance on gas over the past decade has contributed to the current energy imbalance. While Iran is the world’s third-largest gas producer, consumption has outpaced production,” Shakeri noted.

He highlighted that thermal power plants now consume more than 94 billion cubic meters of gas annually, up from 63 billion in 2012, equivalent to the output of four South Pars phases. The mismatch between supply and demand has created significant challenges, especially with declining pressure in South Pars, which supplies roughly 70% of the country’s gas.

“If supply and demand are not managed simultaneously, the imbalance could exceed 300 million cubic meters per day at peak consumption, forcing the government to divert revenue from development and public welfare to energy imports,” Shakeri warned.

Shakeri also criticized the low efficiency of thermal power plants, which operate at 39% efficiency compared to the 45% target, causing daily gas overconsumption of about 32 million cubic meters.

The deputy minister outlined the government’s renewable energy plans, including the addition of 12,000 MW of renewable capacity under the Seventh Development Plan. The oil and gas sector is spearheading solar power projects, with the private-led petrochemical industry planning 5,000 MW, and the National Gas, Refining, and Oil Companies also executing projects totaling several hundred MW.

Shakeri emphasized that by coordinating across government bodies, private industry, and the public, solar energy development can play a key role in reducing energy imbalance and diversifying Iran’s energy mix.

 


Email is required
Characters left: 500
Comment is required