At the beginning of the session, Mohammad Keshvari, the director of the Iran IoT Forum, elaborated on the current state of energy imbalance and the importance of addressing it. He emphasized the necessity of consumption management in controlling this issue and highlighted the critical and facilitating role of the IoT Forum and industry associations in bridging the gap between the private and public sectors to resolve concerns and operational challenges. Presenting a structured analysis of the energy imbalance in the electricity and gas sectors, he stated that Iran is now facing a severe energy imbalance crisis. Some key challenges include a daily gas production-consumption gap of 400 million cubic meters in the winter of 2025 and an electricity production-consumption gap of 25,000 megawatts in the summer of 2025. While the country is focusing on consumption management as a crisis management strategy, solving this issue requires a more intelligent approach.
He concluded by outlining the perspectives and plans of stakeholders in various sectors, including the energy sector, government, and private sector. He discussed technical and operational challenges, measurement and verification (M&V) issues, the role of digitalization, investment concerns of private sector players such as operators or contractors, the roles of different stakeholders including telecom operators and ESCOs, as well as competition and monopoly issues related to applications, data analysis, and utilization. These topics were set to be discussed in depth during the expert panel.
Sadina Abaii, the head of the ICT Commission at the Iran Chamber of Commerce, spoke about the chamber’s potential in addressing the energy imbalance issue. She noted that with 140 years of experience, the Chamber of Commerce has evolved into one of the country’s most capable organizations. Given its strong expert capacity, she emphasized that the chamber can collaborate with the government to solve issues while making its diverse resources available to the private sector for comprehensive problem-solving.
Hadi Madadaggh, a board member of the Iranian Smart Energy Network Association, discussed the establishment of an intelligent networked structure for electricity production and distribution, relying on renewable energy sources. He also emphasized the significant role of operators in this process and reviewed the history and success of the FAHAM project.
The session continued with contributions from various experts, including:
– Mohammad Khodadadi, project manager of the Smart Energy Operator Plan
– Sajjad Kashfi, director of energy and carbon at the National Iranian Gas Company
– Ali Naqavi, CEO of Iran Energy Exchange
– Mostafa Darjazi, CEO of Hamrah Smart Businesses Company
– Moihammad Mrshams, chairman of the Iranian Association of Energy Service Companies
– Mehdi Kalantar Hormozi, deputy for ICT at the Presidential Center for Transformation and Progress
–Arash Najafi, head of the Energy Commission at the Iran Chamber of Commerce and chairman of the Iranian Energy Consumption Optimization Association
– Mohammad Sadegh Karimi, acting head of energy affairs at the Plan and Budget Organization of Iran
These experts shared their insights during the panel discussion.
The Root of Iran’s Energy Crisis Lies in Poor Policies and Consumption Patterns
Mohammad Khodadadi, the project manager of the Smart Energy Operator Plan, pointed out that during the 2010s, electricity prices increased at a rate significantly lower than inflation. Meanwhile, total electricity consumption surged by 50%, while the country’s GDP remained stagnant, exacerbating energy intensity. He attributed this to three main factors:
1. High energy consumption in industries producing electrical appliances
2. Increased household energy use due to the widespread adoption of air conditioners
3. The rise of cryptocurrency mining
He stressed the need for policy changes and cultural shifts to reduce dependency on government intervention.
He further added that replacing outdated cooling systems (both gas and electric) alone could reduce peak summer electricity demand by 4,800 megawatts. The cost of this initiative is estimated at $2 billion, whereas generating and transmitting the same amount of electricity would require $4 billion in capacity expansion and $8 billion in gas consumption. He criticized flawed pricing structures and cross-subsidies, which have historically made energy efficiency projects unattractive for the state electricity company (Tavanir). Some optimization projects could have been undertaken by private-sector cryptocurrency miners, but domestic manufacturers blocked such efforts.
He warned that involving the government in financially guaranteeing efficiency projects would lead to failure. Instead, an effective energy efficiency market should be established, allowing industries to buy and sell savings certificates and ensuring a reliable electricity supply.
Digitalization Can Help Solve Iran’s Energy Imbalance
Sajjad Kashfi, director of energy and carbon at the National Iranian Gas Company, explored solutions for the energy imbalance crisis. He acknowledged that while diagnosing the root causes is important, recent efforts in implementing energy efficiency programs and limited use of savings certificates have created a promising discourse. He cited a pilot project in Yazd as an example, noting that greater interagency cooperation could improve its success rate.
He admitted that the gas sector lags behind the electricity sector in energy-saving initiatives. The Supreme Energy Council recently tasked the National Iranian Gas Company with overseeing energy service providers (ESPs), with an associated regulation expected to be finalized soon by the Cabinet. These ESPs will implement and evaluate energy-saving projects in collaboration with gas distribution companies. After testing these models, the long-term plan is to issue licenses for ESPs, enabling them to retail gas, install smart systems, and operate platforms to facilitate the work of ESCOs.
Lack of Clear Energy Efficiency Targets in Iran
Ali Naqavi, CEO of Iran Energy Exchange, argued that energy should be treated as a tradable commodity. He noted that energy savings certificates were traded for the first time this year, though gas sector transactions remained minimal. He criticized the government for failing to set clear energy-saving targets, which has contributed to the current crisis.
He also raised concerns that government operators are working with ICT agencies to develop centralized platforms for monitoring all energy meters. He emphasized that consumption management should remain a private-sector initiative.
Naqavi suggested expanding the energy exchange market to include hourly electricity and gas trading, similar to existing electricity market structures. He stressed the importance of legally ensuring investment returns for energy efficiency projects.
Investment Security is a Key Challenge
Mostafa Darjazi, CEO of Hamrah Smart Businesses, highlighted challenges in energy imbalance discussions. He clarified that a smart operator is not necessarily a telecom operator but plays a crucial role in enabling connectivity.
He criticized the lack of access to precise consumer energy data, which limits private-sector participation in efficiency projects. He urged the Ministry of Energy to adopt data-driven policymaking. Additionally, he pointed out that existing investment guarantee mechanisms are insufficient for large-scale efficiency projects.
Darjazi warned against government-controlled energy operators, arguing that such a model would lead to monopolistic inefficiencies. He emphasized that mobile network operators, with their extensive infrastructure, could facilitate smart metering to help address the electricity imbalance. He stressed that the challenges are well known, but implementation remains flawed.
Data Deficiency is a Major Weakness in Iran’s Energy Sector
Mohammad Mirshams, chairman of the Iranian Association of Energy Service Companies, argued that energy efficiency could be achieved if the government refrained from interference. He emphasized that establishing an optimization market could transform the energy efficiency sector. However, he warned that certain energy-saving funds are being misallocated, reducing their effectiveness.
A Cross-Sectoral Approach to Energy Data is Needed
Mehdi Kalantar Hormozi, deputy for ICT at the Presidential Center for Transformation and Progress, called for a holistic approach to data-driven energy policies. He emphasized the need for integrating energy data with broader datasets to improve consumption management and ensure fair energy distribution.
The Government is the Sole Beneficiary of Iran’s Energy Policies
Arash Najafi, chairman of the Energy Commission at the Iran Chamber of Commerce, blamed poor governance for the energy crisis. He criticized past policies, such as the 2004 Energy Price Stabilization Act, for distorting market incentives. He argued that true solutions must come from the private sector without government intervention.
Making Energy Efficiency Attractive to Investors
Mohammad Sadegh Karimi, acting head of energy affairs at the Plan and Budget Organization, described efforts to make energy efficiency financially appealing to the private sector. He outlined two main strategies:
1. Performance-based savings certificates for specific efficiency projects
2. The introduction of regulated energy service providers, subject to verification and certification procedures
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