Why did Iran's energy consumption double in a decade?

Why did Iran's energy consumption double in a decade?

By Dalga Khatinoglu

Iran has had one of the most accelerating energy consumption rates in the world, despite very slow economy growth during last decade, but what is the reason?

A statistical and analytical agency within the U.S. Department of Energy says Iran consumed almost 244 million tons oil equivalent (OE) of primary energy in 2013.

Of course, the U.S. energy Information Administration's (EIA) report, released June 19 covers the figures until 2013, but the official Iranian statistics indicate that the country's primary energy consumption exceeded 270 million tons OE (or 2 billion barrels OE) until March 2015.

Natural gas and oil accounted for almost all (98%) of Iran's total primary energy consumption, with marginal contributions from hydropower, coal, nuclear, and non-hydro renewables. The EIA says that Iran's primary energy consumption has grown by almost 50% since 2004.

Iran's power sector

IEA says Iran generated almost 224 billion kilowatt-hours (kWh - unit for measuring energy) of electricity in 2013, of which 92% was from fossil-fuel sources.

One of the biggest primary energy consuming sectors in Iran is power plants. The latest official statistics of Iran's Energy Ministry indicate that during last fiscal year, ended on March 20, 2015, the country produced 257.5 billion kWh of electricity.

Iran added 2.87 gigawatt (GW - unit for measuring power) to its power generation capacity during last year, while for the current fiscal year it's expected that power production level will increase by 2.5 GW to about 75.6 GW. As the statistics indicate, during the several years, Iran has increased power generation significantly.

For comparison - Iran's power generation capacity was 56.5 GW(or 156 billion kWh of electricity) in 2010, while this figure in 2004 was only 38 GW. As the official statistics indicate, Iran's power generation capacity doubled during the last decade.

Iran consumed about 49 billion cubic meters (bcm) of gas, as well as more than 19.5 billion liters of gas-oil and fuel oil in power sector during the last fiscal year, while these figures were 33 bcm and 5.7 billion liters respectively in 2010.

Iran's housing sector

The other sector which has a significant share in Iran's primary energy consumption is the housing sector. During last fiscal year, the housing sector of Iran consumed about 91 bcm.

Iran's housing sector consumes almost a half of the country's total produced sweet gas, while gas shares about 67 percent of the country's total primary energy consumption.

The country's total raw gas consumption increased from less than 90 bcm in 2004 to about 210 bcm in the last fiscal year.

Iran's gas consumption in all spheres during the last fiscal year

Sweet gas consumption

Last fiscal year (bcm)

Two years ago (bcm)

Change Y/Y

bcm

Housing sector

91

88.9

2.1

Industrial sector

32.45

29.8

2.65

Power plants

50.5

36.8

13.68

Re-injection

33.9

32.9

1

Flaring

11.7

11.7

0

Export

9.7

8.7

1

Total

229

209

Below is Iran's actual fossil energy consumption per day according to the data derived from National Iranian Oil Refining & Distribution Company's (NIORDC) annual report

Fiscal year

Total daily energy consumption

Kb of OE

Daily gas consumption

Kb of OE

Daily liquid fuels

Kb of OE

2004-2005

2931

1689

1174

2009-2010

3918

2504

1332

2010-2011

4027

2673

1274

2011-2012

4070

2707

1290

2013-2014

4120

2688

1362

2014-2015

4383

-

-

The statistics of NIORDC (table above) indicates that the country's actual fossil energy consumption reached 1.6 billion barrel of OE, but this is just "actual energy consumption", not all consumption.

In fact, about 22 to 25 percent of Iran's total energy consumption is wasted without reaching any consumer and isn't included in actual energy consumption statistics.

Dalga Khatinoglu is an expert on Iran's energy sector, head of Trend Agency's Iran news service

Subscribe to Trend in Google News! Subscribe
Azerbaijan talks 4G network coverage in liberated territories
Azerbaijan talks 4G network coverage in liberated territories
Weekly review of key events in Azerbaijan's ICT sector
Weekly review of key events in Azerbaijan's ICT sector
Partnered with Azerbaijani banks, VISA actively developing technologies for issuing digital cards
Partnered with Azerbaijani banks, VISA actively developing technologies for issuing digital cards
Loading Bars
Latest
Azerbaijani FM, US Assistant Secretary of State discuss latest situation in region
Armenia seen that, whole world seen that, no-one has been able to stop us - President Ilham Aliyev
Israel lifts tariffs on dairy imports to cut prices
Young grew up who did not see Karabakh, they liberated Karabakh at cost of their lives – President Ilham Aliyev (VIDEO)
Azerbaijani Minister of Youth and Sports talks about appointment of new deputy minister
I tell them to give us date of when Zangazur corridor will be opened - President Ilham Aliyev to Armenia (VIDEO)
Azerbaijan discloses volume of oil exported to Turkey in 10M2021
Azerbaijani deputy defense minister leaves for Moscow
Forecast of Azerbaijani State Oil Fund’s total management costs for 2022 revealed
Turkmenistan approves anti-crisis program for 2022
Volume of cargo shipment via Turkish ports from Morocco for 10M2021 revealed
Ministry shares data on volume of cargo shipment via Turkish ports from Belgium for 10M2021
Volume of cargo shipment via Turkish ports from China for 10M2021 unveiled
Turkey discloses volume of cargo shipment via its ports from Germany for 10M2021
Cost of goods transported via sea up in Azerbaijan
President Ilham Aliyev, First Lady Mehriban Aliyeva visit monument to national leader Heydar Aliyev in Guba (PHOTO/VIDEO)
SOFAZ asset management revenue forecast for 2022 unveiled
Iran's Energy Exchange announces products to be on sale on December 7
Azerbaijan is creating social zone in industrial park of liberated Jabrayil district- ministry
Turkmenistan continues oil prospecting work on Cheleken peninsula
Uzbekistan shares data on import of potatoes in 10M2021
Price indexes of construction, trade sectors at Uzbek stock exchange fall
Galt & Taggart shares data on Georgia’s bonds on London Stock Exchange
Uzbekistan unveils volume of exports and imports
Georgia’s persimmon exports continue to increase
Russia remains main importer of Georgia’s tangerines
Uzbekistan reveals volume of tomato exports for 10M2021
Uzbek Statistics Committee shares data on foreign trade turnover
Kazakhstan’s oil and gas company opens tender to supply electric pump
Turkey discloses volume of cargo shipment via its ports from Albania for 10M2021
Eurostat reveals data on Czechia's import of petroleum oils from Azerbaijan
Vegetable pathogen detected in batch of pepper imported to Azerbaijan
Kazakhstan’s National Bank discloses inflation expectations
Turkmenistan talks demand on local aviation, lighting kerosene among foreign clients
Azerbaijan Academy of Sciences talks demographic indicators of Karabakh, East Zangazur
Kazakhstan talks forecasted growth level of GDP for late 2021
All 6 Israel policymakers voted to keep key rate at 0.1%
Iran reaches increase in load/unloaded operations at Amirabad port
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 585 more COVID-19 cases, 944 recoveries
Iran's Bahar Azadi gold coin price continues to rise full speed
Eni Turkmenistan Ltd to purchase spare parts for pumps via tender
Azerbaijan talks 4G network coverage in liberated territories
Iran’s Nakhlak Lead Mining Complex boosts production
Kazakh-Chinese bitumen plant opens tender for vehicles rent
Act of amnesty covers 16 foreign citizens in Azerbaijan
Tesla did not want to wait on EU aid - German economy minister
Austrian President swears in Karl Nehammer as new Chancellor
Iran’s CBI general director talks foreign currency exchange activity data
Unemployment in Israel fell sharply in November
Oil and gas production dep’t of Turkmenistan’s Turkmennebit SC exceeds production plan
Volume of natural gas transportation via Serbian-Hungarian interconnector revealed
Field rearranging underway on Serbian-Hungarian gas interconnector route
Iran not to follow 'plan B' while in Vienna nuclear talks - FM
Georgian business sector sees increase in turnover
Kazakh National Bank announces its decision for base rate
Kazakhstan reveals GDP growth in 10M2021
Azerbaijan working on flight recorder of crashed helicopter - Prosecutor General's Office
UK to block poor-performing companies from winning public work
Croatia confirms its first two cases of COVID-19 Omicron variant
Balacans Agro Food LLC, Azerbaijan Investment Company sign agreement (PHOTO)
Azerbaijan to consider joining int'l documents on intellectual property protection
Oil majors to mitigate demand fluctuation with digital twins
SOFAZ sees significant increase in Shah Deniz revenues
Azerbaijan shares data on number of freed convicts as part of act of amnesty
Annual inflation rate slightly slows down in Kazakhstan
SOFAZ discloses revenues from Azeri-Chirag-Gunashli
Azerbaijan shares data on number of people covered by Act of Amnesty so far
TBC Capital publishes Georgia’s weekly economic review
Oil rebounds above $71 on Omicron hopes, Iran talks
President Ilham Aliyev, First Lady Mehriban Aliyeva meet with residents of Gonagkand settlement (PHOTO/VIDEO)
Israeli firm to sell HSBC Tower in New York for $855 million
Iran reveals COVID-19 data for December 6
President Ilham Aliyev, First Lady Mehriban Aliyeva view conditions created at secondary school № 1 in Guba (PHOTO/VIDEO)
President Ilham Aliyev, First Lady Mehriban Aliyeva attend opening of Guba Abad Factory enterprise (PHOTO/VIDEO)
President Ilham Aliyev inaugurates Guba-Gonagkand highway (PHOTO/VIDEO)
President Ilham Aliyev and First Lady Mehriban Aliyeva view conditions created at Guba Olympic Sports Complex (PHOTO/VIDEO)
Crisis center discloses 32,136 new coronavirus cases in Russia over past 24 hours
Chevron to expand investments in Kazakhstan’s Tengiz field dev't
Famous scientist talks about significance of victory in Azerbaijan’s Karabakh (PHOTO)
Iran shares data on cargo transportation
President Ilham Aliyev and First Lady Mehriban Aliyeva arrive in Guba district for visit (PHOTO/VIDEO)
Azerbaijan prepares bill on repatriation of people to Karabakh – state committee
Azerbaijani State Oil Fund’s estimates on oil, gas transportation revenues for 2022 unveiled
Azerbaijan gives update on mine clearance work in liberated lands
Azerbaijan’s 10M2021 volume of goods exports via stationary vehicles increases
State Oil Fund of Azerbaijan forecasts revenues and expenditures for 2022
Azerbaijan’s forecast for oil production from Bahar field in 2022 revealed
Cargo movements in Iran’s Noshahr Port down
India, Russia to ink number of pacts during Modi-Putin summit on Dec 6
India clears plan to make AK-203 assault rifles with Russia
Georgia to reduce external debt and budget deficit in 2022 – PM
From buyer of military goods, India wants to become Russia’s ‘development & production’ partner
Georgia, US discuss wine exports potential
EU, UNDP to implement project for green economy transition in Uzbekistan
Imperial Springs Forum 2021 concluded (PHOTO)
Private investment to pick up: CEA Krishnamurthy V Subramanian
Bangladesh, India: Celebrating 50 years of friendship
Georgia's coal production up
Uzbekistan shares data on sales of oil and gas products in 11M2021
All news