New Measures to Help Reduce Energy Consumption

EghtesadOnline: Tehran Construction Engineering Organization (TCEO) signed a memorandum of understanding with Iran Fuel Conservation Company (IFCO), a subsidiary of the National Iranian Oil Company, to formulate strategies to optimize energy consumption in buildings.

News ID: ۷۷۴۷۰۰

19 March 2017

The MoU was signed Tuesday in Tehran in the presence of Hussein Qorbankhani the head of TCEO, Ali Vakili IFCO managing director as well as Hamed Houri Jafari IFCO's head of energy consumption in buildings, Shana reported.

According to Jafari, the MoU calls for judicious use of energy by changing consumption patterns, enhancing the quality of building materials, offering house owners incentives for judicious energy use as well as preventive measures to minimize energy waste in buildings.

“IFCO and TCEO should draw on one their mutual experience to find better ways to deal with energy waste in buildings,” Jafari said, adding that energy waste is a critical issue and needs to be dealt with systemically, warning that Iran would turn into a major energy importer within a few years if the problem is not resolved without further delay, Financial Tribune reported.

Elaborating on the details of the agreement, he noted that establishing a joint research center as well as holding regular technical workshops and training programs would help improve the state of energy consumption.

“Buildings are very energy-intensive, gobbling up 50% of electricity and 40% of gas consumption,” Ahmadreza Tavakkoli, director of Iran Energy Efficiency Organization, was quoted as saying by Shana.

“Energy consumption in buildings is four times higher than the global average whereas the lion’s share of energy in developed countries is consumed in industries,” he noted.

Many, including Seyyed Mehdi Mirsalehi, an official at the Ministry of Industries, Mining and Trade, blame Iran’s high energy consumption on the fact that the sector, especially electricity, is heavily subsidized.

They claim consumers pay a fraction of the real cost. This has not only led to more energy use, but it has also taken a toll on the Energy Ministry’s finances, according to Energy Minister Hamid Chitchian.

“If electricity were sold at real prices, the ministry would be able to not only settle its unpaid bills ($11 billion) to the private sector, but also implement key development plans,” he said in January.

Chitchian says to save energy and reform consumption patterns, subsidies must be cut to push tariffs closer to real prices. Electricity is sold at the subsidized price of 530 rials (about 0.017 cents) per kilowatt-hour.