In recent years, Iran's electricity industry has faced serious challenges. According to data from the Statistical Center of Iran, the share of the water, electricity, and natural gas supply sector in the gross domestic product in 2024 was about 3.2 percent. This figure indicates the economic importance of this sector, although the independent share of the electricity industry has not been reported separately.
Dimensions of Electricity Imbalance
A report from the Research Center of the Islamic Consultative Assembly shows that in the summer of 2024, the electricity consumption demand at peak load reached about 80,000 megawatts, while the maximum simultaneous production capacity of the grid was about 62,000 megawatts. This means that the supply-demand gap at peak consumption reached about 18,000 megawatts. It is predicted that, given the growth in demand and the limitation of production capacity, this imbalance will increase to over 24,000 megawatts in the summer of 2025.
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These figures indicate the urgent need for the electricity industry to increase power generation capacity, improve power plant efficiency, reduce network losses, and develop renewable energy. Additionally, smart consumption management and electricity storage are other requirements for this transformation.
The Necessity of Supporting Innovation and Financing
Addressing the electricity imbalance is not possible solely through the construction of new power plants. Therefore, increasing the operational capacity of production and the overall efficiency of the electricity chain is of special importance. One of the requirements for this transformation is targeted support for innovation and knowledge-based companies. This support should encompass research stages, technology development, prototype construction, and commercialization of products.
Creating a primary market for domestic products through innovative purchasing and facilitating companies' access to laboratory infrastructures can reduce the risk of introducing new technologies into the electricity industry. On the other hand, reforming financing mechanisms is also of high importance. Utilizing the capital market's capacity through project and energy funds and issuing financial securities can provide the necessary resources for the development of technology and innovative projects.
Moreover, large industrial, mining, and petrochemical holdings can play a more effective role in developing self-sufficient power plants and renewable energies by forming strategic alliances, consolidating financial resources, and utilizing the capacities of subsidiary companies.
Innovation development will face limitations without reforming the economic environment and regulating the electricity industry. Establishing stability in electricity purchase contracts and enabling active participation of the private sector are among the actions that can enhance the attractiveness of investment in this industry.
Ultimately, a sustainable transition from electricity imbalance requires the simultaneous integration of three components: technology, financing, and economic governance reform. If government support policies are designed to connect innovation to the market, investment to technology production, and knowledge to economic efficiency, Iran's electricity industry can transform into a technological and competitive industry.
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