"Iran Gripped by Unprecedented Energy Crisis Amid Sanctions and Shortages" - A Nation on the Brink

Iran is staring at an unprecedented energy crisis in the face of significant reserves of both natural gas and crude oil. Government offices either shut down or partially wound up their work, schools and colleges switched entirely online, highways and malls were not lit up, and industrial plants stopped producing, all because of power shortages.

The crisis, fueled by decades of sanctions, aging infrastructure, mismanagement, wasteful consumption, and targeted Israeli attacks, has severely impacted daily life and manufacturing throughout the country. In a televised address President Masoud Pezeshkian recently warned of "dire imbalances" in energy, water, and other resources that can exacerbate into larger crises.

According to officials, there is a deficit of 350 million cubic meters of gas in the supply. It was difficult for the government to decide: either cut gas for residential areas or power plants. To avoid the safety hazards along with the disconnection of heating systems, authorities decided to ban supply to power plants, and electrical rationing spread throughout the country.

Seventeen power plants have been shut down entirely, and others are running at reduced capacity. The state power company, Tavanir, has warned industries to prepare for power outages lasting days or weeks.

Industrial sectors, from steel and glass to food and medicine, have suffered significantly. According to Mehdi Bostanchi, the head of Iran's Coordination Council of Industries, the losses are catastrophic and manufacturing output is likely to decline between 30 percent and 50 percent, costing tens of billions of dollars in losses. It is the small and medium factories that have taken the brunt of the loss, with wide-scale power cuts causing unprecedented damage to operations.

As Iran addresses this crisis, the spillovers continue to bleed into industries, households, and public services of the country.

Within the crises, this is when energy efficiency becomes paramount towards building resilience, ensuring energy security and combating energy poverty. Solutions such as FORCE - which can help save power by 10-15% - hinge on facilitating a more rapid acceleration of energy efficiency across all sectors. It is through an initiative like ENPOSS that helps industries and households find their way through these challenges towards a sustainable energy future. Take your journey with ENPOSS today and help chart a greener, more secure recovery.