Energy in Iran

Energy in Iran is characterized by vast reserves of fossil fuels, positioning the country as a global energy powerhouse. Iran holds the world's third-largest proved oil reserves and the second-largest natural gas reserves as of 2021, accounting for 24% of the Middle East's oil reserves and 12% of the global total.

In 2020, the Total Energy Supply (TES) in Iran was predominantly derived from natural gas (69%) and oil (29%), with nuclear power and renewable sources contributing only 1% each. Despite the heavy reliance on fossil fuels, Iran possesses significant potential for renewable energy. Due to its geographical location near the equator, 90% of the country's land is suitable for solar power generation for at least 300 days a year.

While Iran's energy wealth provides considerable economic opportunities, it also poses challenges. Heavy dependence on oil and gas has resulted in widespread air pollution and high greenhouse gas emissions.

In recent years, Iran has faced a significant energy crisis driven by a combination of aging infrastructure, mismanagement, and international sanctions. This has resulted in frequent power outages, disruptions in industrial production, and challenges in meeting domestic energy demands. Additionally, the growth of cryptocurrency mining in the country has further strained the electricity grid, exacerbating the crisis. Addressing these challenges is crucial for Iran's energy sector to meet the needs of its growing population and economic ambitions. The crisis in Iran energy sector may indicate also a problem in its reported economic data.