Iran's Chamber of Commerce Warns About Worker Layoffs Due to Power Outages

One day after the publication of a report by the Research Center of the Parliament regarding the continuous decline in industrial production growth, the head of the Industry Commission of the Iran Chamber of Commerce has warned about the layoffs of workers in this sector due to frequent power cuts. Alireza Kolahi Samadi said on Sunday, December 23, that in the past three years, the amount of investment in the production, transmission, and distribution of electricity has been 'zero', and Iran is facing a huge electricity deficit. The Research Center of the Parliament also reported yesterday that the economic growth of Iran's industrial sector has sharply decreased since the year 1402 (2023) and this trend has intensified in the first half of 1403 (2024), moving towards 'zero'. Some industries in the country, such as pharmaceuticals, wood and paper, automotive, ceramics, cement, etc., have even faced negative growth in the early half of this year. Mr. Kolahi Samadi stated that the government is obligated to compensate for the damages to industries but is not doing so and lacks the resources. Mahmoud Najafi Arab, the head of the Tehran Chamber of Commerce, also mentioned last week that the share of the industrial and mining sector in the country's gross domestic product decreased by one percent last year compared to 1401, reaching 15.2 percent, and this decline continues. The autumn crop in Iran has decreased by '30 percent' due to power cuts. The warnings about layoffs come at a time when 8.5 million people are active in the industrial sector in Iran, which is equivalent to one-third of all employed individuals in the country. The damage caused by power cuts is not limited to the industrial sector. Previously, the head of the Agricultural Guilds Chamber of Iran reported a 30 percent decrease in autumn crop production, and an inspector from the country's poultry union reported a 20 percent damage to poultry farms due to power cuts. Mr. Kolahi Samadi stated that at least 10 billion dollars of investment is required to compensate for the electricity shortage, and due to the water crisis, there is no longer the possibility of constructing high-efficiency combined cycle power plants. He further explained: 'In this situation, distributed electricity production has increased, and while distributed production continues, supplying diesel will lead to a crisis. The mazut and diesel consumed in the country are also substandard, and high-sulfur diesel destroys engines.' He reminded that in the short term, the only way to increase electricity capacity is solar energy, although renewable energy requires massive investment in the transmission network, and given the condition of the country's transmission network, the distribution of quality solar electricity is not possible. The share of renewable energies such as solar, wind, geothermal, etc., in total electricity production in Iran is currently about one percent, while this figure is over 30 percent in Turkey and the European Union.