Iran: Consumption Challenging Capacity

EghtesadOnline: Energy consumption and wastage have overtaken production and supply and Iran could become an energy importer despite its abundant energy resources, managing director of the Industrial Management Institute said.

News ID: ۷۴۷۸۹۵

17 July 2019

"Optimal energy use, employing new technologies as well as reforming consumption patterns must be the priority," Abolfazl Kiani Bakhtiari was quoted as saying by ISNA.

Referring to the energy crisis unfolding in the country due to amazingly high consumption, he noted that academia, environmentalists, climatologists, experts, policymakers and executive bodies should join hands before it is too late.

According to available data, Iran is the 10th biggest energy consumer in the world, Financial Tribune reported.

The amount of energy used in the country in a day equals the energy produced by burning 3.4 million barrels of oil. This is while daily energy production in Iran is equal to the energy generated by burning 3.6 million barrels of crude.

Countries that surpass Iran include China, the US, India, Japan, South Korea, Germany, Canada and Brazil.

Referring to the unacceptably high energy consumption rates -- reportedly 14 times that of Japan -- he said if effective measures are not taken to check the current pattern, "we will face serious challenges in generating power for future generations.

"One comparison between Iran’s energy consumption and global figures indicates that the world's consumption increased 27% in the past decade, whereas our overall energy use rose by 80%," he said.

Leading the Pack

Global energy demand will double by 2040, Bakhtiari said, noting that Asia will account for the largest proportion of energy that will be consumed in the world over the next 20 years.

Highlighting energy intensity indices, he said the index at 0.63% indicates that energy usage in Iran is 2.5 times that of global average. The index is 0.53% and 0.51% in Russia and Saudi Arabia respectively.

Iran accounts for the consumption of 1.8% of the total energy generated in the world.

Energy intensity is the ratio between gross inland energy consumption (GIEC) and gross domestic product (GDP), calculated for a calendar year. GIEC is calculated as the sum of the gross inland consumption of the five sources of energy: solid fuels, oil, gas, nuclear and renewable sources.

In the period between 1972 and 2014, Iran's energy consumption rose 11 times, a large part of which was used in the household and transportation sectors. Energy officials, including Mohsen Delaviz, head of Iran Fuel Conservation Company, say the massive energy consumption for transporting people and goods is rooted in old and dilapidated vehicles plus poor intra-city and intercity railroads.

Based on figures announced by international companies namely BP, Iran holds 158 billion barrels of crude oil  (9.3% of the world reserves) in addition to 33 billion cubic meters of gas (18% of the world reserves).

The country produces 2.4% of the energy generated globally.

Founded in 1962, the Industrial Management Institute is the vanguard of management, consultancy and education in Iran's industrial and service sectors.