By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > News > Iran enforces rolling power blackouts as fuel shortages bite
News

Iran enforces rolling power blackouts as fuel shortages bite

News Room
Last updated: 2024/11/10 at 12:00 PM
By News Room
Share
4 Min Read
SHARE

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Iran has started implementing rolling power blackouts across the country as the Islamic republic struggles with a shortage of natural gas ahead of winter.

Two-hour daily outages will be enforced in Tehran, the capital city that is home to 9.5mn people, from Monday and will affect homes and businesses, local media reported. Several provinces were also hit by the power cuts on Sunday.

Iran is suffering from an energy supply crunch despite having the world’s third-largest oil reserves and second largest natural gas reserves. Years of under-investment in electricity generation and poor maintenance of existing infrastructure have resulted in recurrent power blackouts during summer, when hotter temperatures led to a surge in the use of air conditioning. 

The power cuts also follow a decision to ban mazut, a high-polluting fuel oil, at three power plants in Arak, Isfahan and Karaj. The alternative to natural gas has contributed to high levels of air pollution in Iran. 

“By halting the burning of mazut at three thermal plants, the government is bound to implement scheduled blackouts across the country,” said Shina Ansari, vice-president and head of the environment department. “This is a valuable step towards reducing the health risks associated with air pollution.”

As temperatures drop in winter, Iran’s supply of natural gas is insufficient to meet surging demand, so its power plants are forced to rely on mazut as feedstock. Experts estimate that the country will face a natural gas shortfall of at least 260mn cubic metres a day this winter. It is in talks to increase imports from neighbouring Turkmenistan.

Iran’s energy crisis is exacerbated by sanctions on its nuclear programme. Since taking office in July, President Masoud Pezeshkian has left the door open to talks with the US and other western countries with the hope of securing some sanctions relief.

After Donald Trump won a second term as president this week, Pezeshkian said “it will make no difference” who will lead the US, arguing that Iran “will not apply a limited view to the development of relations with other states”. In his first term, Trump withdrew the US from Iran’s 2015 nuclear deal with world powers and reinstated sanctions as part of his “maximum pressure” campaign against Tehran.

Sanctions impede Iran from building new power plants or optimising grid operations. Industry experts say some power stations need to be overhauled or replaced.

Ahmad Moradi, a member of the parliament’s energy committee, said on Sunday that the national grid had a shortfall of 20,000MW of electricity, which he blamed on “insufficient generation capacity, problems at power stations and ageing transmission lines”. 

The Islamic republic is also seeking to manage high demand for petrol, which is blamed on fuel inefficient domestic cars, substandard fuel quality and inadequate public transport, amid limited refining capacity for the motor fuel.

Iran has one of the world’s cheapest petrol prices at about $0.02 a litre. Pezeshkian has questioned the viability of huge subsidies on petrol, fuelling speculation of a rise in prices next year.

Read the full article here

News Room November 10, 2024 November 10, 2024
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Flatter Trump or fight him? Smart billionaires do both

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Intel shares slide as chipmaker says supply chain constraints will limit growth

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Venezuela’s lawmakers back oil sector reforms

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

French supertax on wealthy raises only a quarter of planned revenue

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Fed Powell delivers remarks at the Hoover Institution

Watch full video on YouTube

- Advertisement -
Ad imageAd image

You Might Also Like

News

Flatter Trump or fight him? Smart billionaires do both

By News Room
News

Intel shares slide as chipmaker says supply chain constraints will limit growth

By News Room
News

Venezuela’s lawmakers back oil sector reforms

By News Room
News

French supertax on wealthy raises only a quarter of planned revenue

By News Room
News

Chip stocks power South Korea’s share index through record 5,000 level

By News Room
News

Netflix, Inc. (NFLX) Q4 2025 Earnings Call Transcript

By News Room
News

America’s barbarian turn

By News Room
News

Russia knocks out power, heating and water to Ukraine’s freezing capital

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?