Iran's Energy Crisis; Power Cut to 10 'High Consumption' Offices in Tehran

The director of the consumption management office of Tehran's electricity distribution company has announced the cutting of power to 10 high-consumption offices in the capital. Ramin Pourya stated on Tuesday, June 22, that 350 technical and specialized teams have been dispatched to evaluate the performance of executive bodies in energy conservation in Tehran's offices. Due to repeated delays in the development of power plants and widespread electricity wastage in the outdated network, Iran faces a shortage of 14,000 megawatts of electricity during the hot seasons, and this shortfall increases every year. Previously, the Minister of Energy had stated that the 'most important' step for the government to address the electricity shortage was changing office hours and controlling electricity consumption in cooling systems of offices. His remarks come as statistics from the Ministry of Energy indicate that offices consume only 2,000 megawatts of electricity during peak summer consumption, which is equivalent to 3% of the country's total electricity production. Additionally, 13% of the country's electricity production is lost during transmission and distribution due to network aging, and the government has not taken significant measures to reduce network losses in recent years. Statistics from the Ministry of Energy show that the entire public sector, including offices, hospitals, schools, banks, universities, and street lighting, accounts for 9% of the country's electricity consumption; in other words, if all these sectors were to shut down completely, only half of the country's electricity shortfall would be compensated. Iran has only achieved 'one-fifth' of its targeted electricity production growth in the year 1402 (2023). The Iranian government had aimed to launch over 6,000 megawatts of new power plants last year, while only 2,000 megawatts were realized. In previous years, the actual growth in electricity production in Iran has been very low, mainly related to thermal power plants that operate with gas, diesel, and mazut. Last year, the targets for growth in electricity production from clean solar and wind sources were not even realized by 3%. Mr. Pourya claimed that 'a significant portion of electricity consumption in the metropolis of Tehran belongs to 5,000 offices and banks located in the capital, and if these customers cooperate, there is a capacity for a reduction of 180 megawatts in this area.' His statement comes as the reduction of 180 megawatts is quantitatively equivalent to 1.3% of the total electricity shortfall in the country and cannot fundamentally address the electricity shortage. The ISNA news agency reports that from June 16, with the change in office hours and rising temperatures, the consumption management program for government and public organizations has commenced. This year, in addition to the previous year, organizations and public agencies have been informed, and inspectors will also visit these centers in person, while the process of controlling office consumption will also be conducted through smart meters.