Iran warns on huge energy intensity
Baku, Azerbaijan, Aug. 14
By Dalga Khatinoglu – Trend:
The energy intensity in Iran is four times more than global average, Deputy Head of the Iran Power Generation and Transmission Company (TAVANIR) Mahmoud Reza Haghifam said, Aug. 14.
He also mentioned that peak demand of power in Iran increased by 7 percent during the current fiscal year, Tasnim reported.
Measured as energy consumption per unit of gross domestic product (GDP), Iranian energy intensity is very high, which was led to vast energy waste and inappropriate consumption due to high governmental subsidies.
Iran ranks first in the allocation of the fossil-fuel subsidies ($60 billion in 2016) in the world, according to the International Energy Agency.
According to official statistics, energy intensity in Iran increased significantly during last decades, while the statistics of the US Energy Information Administration indicate that the index in the world decreased by nearly one-third between 1990 and 2015.
Iran had allocated $13.556 billion worth of subsidies to electricity in 2016, about $21 billion – to oil and around $18 billion – to gas.
According to the International Energy Agency, energy intensity index in Iran is one of the highest in the world (twice as much as the world average) and has been increasing on average of about 3.4 percent per year over the past 40 years.
The country needs a $200 billion investment in total to halve its energy intensity by 2021.
* Energy intensity (barrel per 1 million rials)
Iran consumed 1.742 mb/d of oil products (including 26,800 b/d in power sector), 204 bcm of refined gas (including 61 bcm in power sector) and about 280 TWh of electricity, of which more than 80 percent was generated by thermal power plants in 2016.
Iran’s GDP at current market prices had reached $409.823 billion in 2016.