Page 26 - Iran OUTLOOK 2025

operational capacity emerged as a critical issue, with the system's nominal capacity of 93.3 GW delivering only 61 GW of actual power generation. This 30% shortfall in operational capacity reflected significant infrastructure limitations and maintenance challenges across the power generation network.
The severity of these constraints became particularly apparent during the summer months when the country experienced a 14,000-MW electricity shortage. This deficit underscored the growing gap between Iran's power generation capabilities and its increasing electricity demands, leading to widespread disruptions in power supply during peak consumption periods.
The interconnection between gas supply and electricity generation emerged as a crucial factor in these shortages. Power plants consumed approximately 70bn cubic metres of gas annually, creating a complex dependency between gas availability and electricity production. This relationship became particularly strained during winter months, when Iran faced a daily gas deficit of 250mn cubic metres, forcing difficult choices between residential heating needs and power generation.
The age and condition of Iran's power infrastructure compounded these challenges. A significant portion of the country's steam and gas plants had exceeded 30 years of operation, contributing to reduced efficiency and reliability. This ageing infrastructure, combined with underinvestment in modernisation, created a systemic vulnerability in the power generation system.
• 8.4 Renewables
In 2024, Iran's renewable energy sector demonstrated significant development ambitions, marked by plans to substantially expand clean energy capacity whilst building domestic manufacturing capabilities. The government's initiative to construct 30,000 MW of renewable power plants represented a strategic pivot towards sustainable energy sources, with a particular emphasis on leveraging and expanding local production capacity for essential equipment and components.
The sector's potential for economic development became evident during a key stakeholder meeting in Tehran in September 2024. Analysis presented at this gathering suggested that developing 10 GW of renewable energy capacity could generate approximately 450,000 jobs across various specialised fields. These employment opportunities would span multiple sectors, from energy systems engineering to the manufacture of solar panels and wind turbines, indicating the broad
26 IRAN OUTLOOK 2025 www.intellinews.com