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 is energy used in Iran?

Total energy supply (TES) includes all the energy produced in or imported to a country, minus that which is exported or stored. It represents all the energy required to supply end users in the country.

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.

Is there a quick fix to Iran's energy crisis?

There is no quick fix to Iran’s energy crisis. Iran’s Oil Minister Mohsen Paknejad said this week that Iran needs $45 billion in investment to emerge from the energy crisis. Iran could reduce the impact of the crisis through increased gas imports from Turkmenistan.

How does Iran's energy crisis affect regime stability?

The Iranian energy crisis can affect regime stability. The lack of ability to provide basic energy needs to the public is an indicator of significant regime weakness. Iran’s gas trade with its neighbors— Turkey and Iraq—has also been disrupted. There is no quick fix to Iran’s energy shortages, which will continue to limit economic activity.

Why does Iran have a high energy demand?

There are multiple factors in Iran’s energy crisis. One, the domestic gas and power prices in Iran are too low and this leads to high energy demand. The low prices are essentially a government subsidy aimed to keep the public complacent. In the past, when the government has raised energy prices, they have often triggered large-scale protests.