Abbas Aliabadi, the Minister of Energy, emphasized the importance of energy efficiency and its role in preserving national resources at the third Iran Energy Optimization and Efficiency Conference. He announced that the Ministry of Energy aims to increase the country’s renewable energy production capacity to 50,000 MW over the next five years with the help of the private sector and the public. He urged everyone in society to work towards increasing efficiency and preventing energy wastage, highlighting two key principles: “preservation of energy” and “avoiding waste.”
Aliabadi pointed out that Iran ranks second in gas reserves and fourth in oil reserves worldwide, stating, “Iran produces 110 million liters of diesel, 120 million liters of gasoline, 730 million cubic meters of natural gas, and 55 million liters of mazut daily. These figures demonstrate that the country’s energy production capacity is very high.” However, he added that despite this high production capacity, there is an energy imbalance in the country, primarily due to the mismanagement of energy economics. In particular, the cheap distribution of energy and the lack of optimization in consumption have intensified energy consumption and exacerbated the imbalance.
The Minister of Energy also emphasized the need to revise the country’s energy policies and reform its economy. He stated that electrifying energy-consuming equipment is one of the crucial actions to reduce energy intensity, and if these programs were implemented correctly, we could have saved about $1,400 billion in the energy sector by now.
Aliabadi supported the development of electric vehicles, noting that converting 100,000 taxis in Tehran to electric vehicles would only require 200 MW of electricity, while the country’s installed generation capacity is about 93,000 MW. He also emphasized the need for equitable energy distribution, especially regarding electricity, stating that consumption at the benchmark level should be subsidized, but consumption above the benchmark should be supplied through the free market.
He identified providing energy for high-consumption users through the free market as one of the critical ways to encourage private investment in the electricity sector. The development of a green energy exchange platform, the economic reform of the electricity industry, and imposing fees on high consumers are among the Ministry of Energy’s broad initiatives aimed at enhancing energy efficiency and attracting investors to renewable energy development.
During his speech, the Minister elaborated on the Ministry’s plan to increase renewable energy production capacity to 50,000 MW over the next five years, expressing hope that this goal can be achieved through the cooperation of the public and private sectors.
Aliabadi also announced 14 major projects by the Ministry of Energy to cope with peak demand next year, which include constructing new thermal and renewable power plants, improving the efficiency of existing power plants, conducting timely repairs, managing and optimizing consumption, and smartening the electricity industry.
In conclusion, he stressed the need for cultural change and awareness in energy consumption and pointed out that those engaging in illegal activities, such as cryptocurrency mining and consuming excessive electricity, are infringing on the public’s rights. He asserted that increasing electricity tariffs for these individuals is not only justifiable but also a matter of fairness.
Aliabadi welcomed any innovative and effective ideas aimed at improving energy efficiency and optimizing consumption, inviting academia, researchers, and the private sector to collaborate with the Ministry of Energy to reduce energy imbalances and enhance public welfare in the country.
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