Iran faces fuel shortage: electricity rationed to avoid energy crisis

In response to a fuel shortage threatening the power plants, Iran has announced electricity rationing in Tehran and several provinces. The duration of this measure remains unknown.

Share:

The Islamic Republic of Iran has taken an unprecedented measure to address the energy crisis: electricity rationing in its capital, Tehran, and other key provinces. This plan, which will begin on Monday, was confirmed by the official news agency Irna. Power cuts will be applied daily in different sectors of the capital, lasting two hours between 09:00 and 17:00, to reduce the pressure on the country’s power plants.

Fuel shortage and mazut ban: the roots of the crisis

The national electricity distribution company stated that this decision stems from the limited supply of fuel gas to power plants. A government decree has also banned the use of mazut in certain power plants, a decision motivated by health concerns. In fact, the burning of low-quality mazut in power plants is regularly identified as a major pollution source in large Iranian cities, worsening the environmental situation.

This rationing is not limited to Tehran: provinces such as Qom (center), Kerman (southeast), as well as the Guilan and Ardabil regions in the north of the country, will also implement scheduled power cuts. This measure responds to Iran’s persistent difficulties in securing a stable fuel supply for its energy sector.

The duration of rationing remains unknown

Although authorities have detailed the schedule of outages, no clarification has been provided regarding the duration of this measure. According to experts, this lack of information may reflect uncertainties about future fuel supplies, in an economic context marked by Western sanctions. These sanctions, mainly targeting the energy and financial sectors, have significantly reduced Iran’s ability to export and modernize its energy infrastructure.

Previous issues and public anger over power outages

This is not the first time that Iran has faced such a crisis. In recent years, recurring power outages, especially in the summer, have caused public anger, severely impacting daily life and economic activities. Last July, to cope with excessive energy demand, authorities had already halved working hours in government institutions, a measure aimed at saving energy.

Geopolitical and environmental challenges

Despite its vast oil reserves, Iran struggles to meet its own energy demand. According to data from the U.S. Energy Information Administration, the country, which was the world’s seventh-largest crude oil producer in 2022, holds the third-largest proven reserves worldwide, behind Venezuela and Saudi Arabia. However, international sanctions limit its access to the technologies needed to exploit these resources efficiently and to modernize its energy infrastructure.

The government’s decision to reduce mazut use in power plants seems motivated by public health concerns and environmental commitments. Last Sunday, Irna reported that Iran’s Vice President for the Environment, Shina Ansari, will participate in COP29 in Azerbaijan, where energy transition issues will be central.

A Department of Energy report states that US actions on greenhouse gases would have a limited global impact, while highlighting a gap between perceptions and the economic realities of global warming.
Investments in renewable energy across the Middle East and North Africa are expected to reach USD59.9 bn by 2030, fuelled by national strategies, the rise of solar, green hydrogen, and new regional industrial projects.
Global electricity demand is projected to grow steadily through 2026, driven by industrial expansion, data centres, electric mobility and air conditioning, with increasing contributions from renewables, natural gas and nuclear power.
Kenya registers a historic record in electricity consumption, driven by industrial growth and a strong contribution from geothermal and hydropower plants operated by Kenya Electricity Generating Company PLC.
Final energy consumption in the European industrial sector dropped by 5% in 2023, reaching a level not seen in three decades, with renewables taking a growing role in certain key segments.
Réseau de transport d’électricité is planning a long-term modernisation of its infrastructure. A national public debate will begin on September 4 to address implementation methods, challenges and conditions.
The Spanish Parliament has rejected a package of reforms aimed at preventing another major power outage, plunging the national energy sector into uncertainty and revealing the fragility of the government's majority.
The U.S. government has supported Argentina’s request for a temporary suspension of an order to hand over its stake in YPF, a 16.1 billion USD judgment aimed at satisfying creditors.
The United States Environmental Protection Agency extends compliance deadlines for coal-fired power plant operators regarding groundwater monitoring and the closure of waste ponds.
Eskom aims to accelerate its energy transition through a new dedicated unit, despite a USD22.03bn debt and tariff uncertainties slowing investment.
Several major U.S. corporations announce investments totaling nearly USD 90 billion to strengthen energy infrastructure in Pennsylvania, aimed at powering data centers vital to the rapid growth of the artificial intelligence sector.
Nearly USD92bn will be invested by major American and international groups in new data centres and energy infrastructure, responding to the surge in electricity demand linked to the rise of artificial intelligence.
Nouakchott has endured lengthy power interruptions for several weeks, highlighting the financial and technical limits of the Mauritanian Electricity Company as Mauritania aims to widen access and green its mix by 2030.
Between 2015 and 2024, four multilateral climate funds committed nearly eight bn USD to clean energy, attracting private capital through concessional terms while Africa and Asia absorbed more than half of the volume.
The Global Energy Policies Hub shows that strategic reserves, gas obligations, cybersecurity and critical-mineral policies are expanding rapidly, lifting oil coverage to 98 % of world imports.
According to a report by Ember, the Chinese government’s appliance trade-in campaign could double residential air-conditioner efficiency gains in 2025 and trim up to USD943mn from household electricity spending this year.
Washington is examining sectoral taxes on polysilicon and drones, two supply chains dominated by China, after triggering Section 232 to measure industrial dependency risks.
The 2025-2034 development plan presented by Terna includes strengthening Sicily’s grid, new interconnections, and major projects to support the region’s growing renewable energy capacity.
Terna and NPC Ukrenergo have concluded a three-year partnership in Rome aimed at strengthening the integration of the Ukrainian grid into the pan-European system, with an in-depth exchange of technological and regulatory expertise.
GE Vernova has secured a major contract to modernise the Kühmoos substation in Germany, enhancing grid reliability and integration capacity for power flows between Germany, France and Switzerland.