What is Iran's energy supply?

In 2020, the Total Energy Supply (TES) in Iran was predominantly derived from natural gas (69%) and oil (29%), with nuclear power and renewable sources contributing only 1% each. Despite the heavy reliance on fossil fuels, Iran possesses significant potential for renewable energy.

How can Iran stabilize energy output and reduce reliance on fuel imports?

Iran may stabilize domestic energy output and lessen its reliance on fuel imports by depoliticizing energy prices, addressing systemic inefficiencies, and utilizing its substantial renewable energy potential as well as its plentiful natural gas reserves.

Does Iran's energy sector need IRGC control?

Functional administration and strategic planning of Iran's energy sector have been severely hindered by the Islamic Revolutionary Guard Corps' (IRGC) broad control over the country's energy infrastructure, which includes power generation, distribution, and oil exports.

Why is Iran Facing a severe energy crisis?

Despite vast oil and gas reserves, Iran faces a severe energy crisis due to decades of mismanagement, excessive subsidies, corruption, and international sanctions, which have crippled its infrastructure and distorted energy markets.

How does Iran's energy unpredictability affect policymakers?

The results have immediate implications for policymakers, as Iran's energy unpredictability poses a threat to regional energy security and geopolitical stability, while also undermining economic resilience and domestic welfare. Fuel shortages in Iran are the result of a combination of policy, economic, and structural shortcomings.

How has Israel impacted Iran's energy security?

External interruptions, most notably the clandestine Israeli strike on two vital gas pipelines in February 2024, have significantly weakened Iran's energy security. Authorities were forced to use emergency supplies due to the sabotage, which also led to a 350 million cubic meter daily gas shortage.