Iran, despite its substantial gas reserves, is experiencing power blackouts and industrial shutdowns. The prolonged period of mismanagement, coupled with the backing of the cannibalistic regimes of Assad and Putin, poses a significant risk of transforming the country into an energy importer.
Iran possesses significant reserves of natural gas and crude oil globally, ranking second among proven gas reserves and fourth among proven crude reserves.
Despite its size, the energy giant is encountering a fuel shortage, as the demand for natural gas exceeds its production capabilities.
Recently, Iranian authorities have implemented measures to ration electricity, resulting in the closure of schools and public offices nationwide. Additionally, they have turned off the lights that illuminate major highways in Tehran and other locations.
President Masoud Pezeshkian conveyed a message to citizens in a video, encouraging them to reduce the average temperature of their homes by 2 degrees Celsius (3.6 degrees Fahrenheit) to assist his government in addressing the energy crisis.
The appeal underscores the seriousness of Iran’s energy deficit, intensified by its significant dependence on gas-fired power plants, which represented up to 86% of the country’s overall electricity generation in 2023.
Gas shortages have compelled authorities to resort to burning mazut, a cost-effective yet significantly polluting heavy oil, for electricity generation, thereby exacerbating air pollution in major urban areas.
Iranian officials attribute the gas shortages to Western sanctions.
Tehran asserts that the sanctions have obstructed investments in the development of gas fields, the construction of power plants, and enhancements in efficiency. This explanation does not adequately consider the fundamental systemic issues at play.
Arezoo Karimi, a journalist specializing in Iran’s economy for IranWire, argues that while oil exports generate significant revenue, Tehran has redirected a significant portion to finance its geopolitical goals, including supporting its regional allies, such as the Bashar Assad regime in Syria.
Karimi stated that Iran has invested billions of dollars over the years to support the Assad regime, which includes providing millions of barrels of crude oil at no cost.
She noted that reports indicate Iran has allocated more than $25 billion to Syria, primarily through oil assistance. “The emphasis on regional alliances rather than infrastructure investment has resulted in a significant lack of modernization within Iran’s energy sector.”
Currently, Iran is experiencing a significant natural gas deficit of 350 million cubic meters each day, alongside a 20-gigawatt shortfall in electricity supply and an escalating gasoline consumption rate of 15 million liters daily. This energy crisis represents the most significant challenge since the 1979 revolution.
In the absence of immediate solutions, forecasts indicate that Iran may have to resort to importing natural gas to satisfy its domestic demand.
The energy crisis in Iran is indicative of years of mismanagement, the impact of sanctions, and the influence of geopolitical priorities involving leaders like Assad and Putin, which have led to a diversion of resources from essential domestic investments. In light of the country’s significant shortages and increasing economic pressures, it is evident that tackling these systemic challenges necessitates a comprehensive reevaluation of strategy and governance.
The observable outcomes are evident: factories ceasing operations, residences experiencing prolonged blackouts, and pollution metrics escalating to unprecedented levels. Experts caution that without intervention, Iran may face intensified economic stagnation, increased public discontent, and an escalating dependence on energy imports.
How Supporting Assad Regime in Syria Led to Blackouts in Iran
