Iran Urges Shift in Energy Management Approach

Iran Urges Shift in Energy Management Approach
(Monday, September 28, 2026) 17:12

TEHRAN, Sept. 28 (NIPNA) — Iran needs to change its approach to energy management and direct energy saved through lower consumption in non-productive sectors toward production, Deputy Petroleum Minister and National Petrochemical Company (NPC) CEO Omid Shakeri said.

Speaking on Monday at a ceremony marking cooperation between NPC and Shiraz Petrochemical and Pardis Petrochemical, Shakeri said the country’s energy intensity had increased by about 40% over the past 13 years, despite policies aimed at reducing it.

He referred to the general policies on consumption-pattern reform issued in 2010 and legislation adopted that year, under which energy intensity was supposed to be halved over a 10-year period. However, by 2023, the target had not been achieved and energy intensity had instead risen by about 40%, he said.

According to Shakeri, the situation indicates that the country’s initial policies and objectives were appropriate but had not been adequately implemented.

He cited the two-year implementation of the “Nabz Energy” energy-saving campaign as an encouraging sign of greater attention to consumption-pattern reform. He said the country was about a decade behind its intended targets in this area.

Energy intensity and production

Shakeri stressed that reducing energy intensity should not be equated simply with reducing energy consumption.

Energy intensity represents the ratio of energy consumption to gross domestic product (GDP), he said. Therefore, one way to reduce it is through energy efficiency and conservation, while another is to generate greater economic activity and production with the same amount of energy.

He identified the petrochemical industry as a productive sector that contributes to foreign-exchange earnings and GDP. When household and commercial gas consumption rises during the cold season and restrictions are subsequently imposed on industries, including petrochemicals, part of the GDP that could contribute to lowering energy intensity is lost, he said.

Shakeri said broader public participation in the Nabz Energy campaign could help increase GDP and generate greater economic benefits, adding that the media should explain that reducing consumption in non-productive sectors can free energy for productive activities.

“The energy released from non-productive sectors should be allocated to sectors capable of generating economic activity and production,” he said.

He added that the government’s energy-management policy emphasizes conservation, consumption management and public participation to ensure the energy required for continued industrial production.

Petrochemical industry reports energy savings

Shakeri said more than 75% of petrochemical production processes currently comply with high energy-consumption standards.

Although he described the figure as significant, he said the industry should not be satisfied with anything below full compliance and expressed hope that the remaining 25% would also be brought into the optimization process.

Energy-efficiency projects in the petrochemical industry over the past four years have resulted in savings of about 1.8 billion cubic meters of natural gas, he said.

He also said petrochemical companies had entered the renewable-energy sector, with 680 MW of solar power capacity brought into operation and a further 200 MW expected to come on stream by the end of the year.

Shakeri said the industry’s efforts reflected a growing understanding of the value of energy, which he said depended not only on its price but also on its availability and the ability to secure supplies when needed.

“Continued production in the petrochemical industry depends on a continuous flow of energy,” he said, adding that petrochemical producers understood that sustained production was impossible without reliable energy supplies.

He thanked Shiraz Petrochemical and Pardis Petrochemical for joining the Nabz Energy campaign this year and called on other companies to participate.

Lower gas availability expected

Shakeri said the damage caused by the war meant less natural gas would be available for consumers this year.

He called for broader participation in the Nabz Energy campaign so that available gas could be allocated more efficiently and the economic impact of supply restrictions could be reduced.

He added that efforts by the National Iranian Oil Company and National Iranian Gas Company had restored part of the capacity lost in recent months.

Petroleum Minister Mohsen Paknejad had been pursuing the reconstruction and restoration of damaged capacity since the first day of the war, Shakeri said, expressing hope that all lost capacity, including damaged petrochemical facilities and infrastructure, would return to operation as soon as possible.

Petrochemicals and the economy

Shakeri said attacks on energy and petrochemical facilities demonstrated the importance of the industry to Iran’s economy.

“Even if the military war has officially ended, the economic war continues, and the petrochemical industry is now on the front line of the economic war,” he said.

He highlighted the presence of petrochemical products in everyday life and said foreign-exchange earnings from the industry were used to help finance medicines, essential goods and other national needs.

Shakeri also pointed to the ownership of a number of petrochemical companies by pension funds or their partial ownership by such funds, saying continued operation of the industry therefore affects pensioners and other parts of society.

He said the industry’s stakeholders extended far beyond its 75 companies, with millions of people directly or indirectly connected to and affected by petrochemical activity.

“Energy optimization is service to the country”

Shakeri called on all consumers to participate in energy-efficiency efforts so that more energy could be made available to productive and industrial sectors.

Referring to the country’s current circumstances, he said people could contribute to the national energy-efficiency campaign just as they had stood together in defense of the country.

“I believe participation in energy optimization is ‘service to the country,’” Shakeri said, explaining that reducing unnecessary consumption and freeing energy for production would allow individuals to contribute to maintaining economic activity.

He said the Nabz Energy campaign had continued for two years and benefited different groups. According to Shakeri, part of the resulting resources had been directed toward social initiatives such as wheelchairs, school supplies and environmental support, while about 1 billion cubic meters of additional gas had been made available to the petrochemical industry last year, helping it maintain production.

Shakeri thanked the organizers of the Nabz Energy campaign, the National Iranian Gas Company, the Petroleum Ministry’s Planning Department and Petroleum Minister Paknejad, expressing hope that efforts to optimize consumption and allocate energy more effectively to productive sectors would deliver results.

At the event, Mohammad Ali Soleimani, a board member of Pardis Petrochemical, said the company’s continued participation in the Nabz Energy campaign reflected the industry’s social and environmental responsibilities.

Babak Pourkia, CEO of Shiraz Petrochemical, said the company’s participation in the campaign could help protect the environment, sustain production, manage the gas imbalance during the second half of the year and preserve industrial production capacity.

 

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