Petrochemical Exports Reach $10.3b in First Nine Months of the Year

TEHRAN (Iran News) Madadi noted that for about nine years, there have been continuous calls from the Ministry of Energy regarding renewable energy, which is both environmentally beneficial and utilizes God-given resources such as wind and sunlight to generate needed electricity in the country. He mentioned that renewable electricity significantly supports the country and industry during peak demand times, which poses a major challenge. Predictions suggest that by 2041, an additional 200,000 megawatts of electricity will be required at a growth rate of 5% per year, while the current installed capacity stands at 94,000 megawatts. This creates a significant gap that could lead to substantial economic losses if unaddressed.

He further explained that according to official announcements, the industry faced over 200 trillion rials in opportunity costs this year due to energy shortages, compared to around 80 trillion rials the previous year. Madadi attributed electricity generation and consumption imbalances primarily to the state-controlled economy, calling for the removal of Tavanir (the national power distributor) from the electricity purchase and sale cycle. He criticized the current system where electricity generated is sold to consumers without timely payments to producers, saying: “If the foundation is wrong, why continue along this path?” He attributed the underdevelopment of renewable energy in the country to the lack of budget allocation for fuel costs within the ministry’s framework.

According to Madadi, Article 61 of the Consumption Pattern Reform Law requires the government to guarantee a 20-year buyback price for those wishing to invest in renewables. However, he lamented that the government has resisted implementing this law and failed to allocate a budget for it. He stressed that the government should step away from the intermediary role in the electricity market, stating, “As long as this process continues, we should not expect improvements in the electricity sector.” “Exports ”

Madadi noted that the private sector is tasked with developing renewable energy solutions. He pointed out that in recent years, a significant portion of foreign investment targeted renewable energy, with companies from Germany, France, Italy, and South Africa establishing power plants. However, these developments were halted due to non-payment by the government. He expressed a strong conviction that a state-led economy cannot foster the growth of renewable energy and criticized government intervention in creating a “Green Exchange” for renewables. “Exports ”

Ardeshir Dadras, Chairman of the CNG and Related Industries Association, highlighted the importance of energy economics, noting that 85% of Iran’s economy depends on energy, primarily natural gas. He emphasized the need to adopt global standards and patterns in energy development, advocating for the use of frameworks outlined by the International Energy Agency regarding pricing, storage, and reducing energy waste.

Hassanali Taghi-Zadeh Landeh, Chairman of the Syndicate of Electricity Producers, criticized the management of electrical economics by the Ministry of Energy and Tavanir, asserting that government presence in the electricity trade hinders the growth of power plants and breeds inefficiency in the electricity economy. He called for the government to exit the electricity market and hand over operations to the private sector to alleviate shortages. He expressed skepticism about finding a solution for Electricity imbalance as long as the government remains involved in electricity trading.

In summary, increased interventions by the government in the electricity sector, the lack of adherence to international standards, and rising costs are leading to significant challenges in Iran’s electricity production, as industry leaders urge for a shift towards privatization and a market-driven economy.