Sustainability of energy production and use in Iran

The issue of oil and gas policies in Iran is rather complex. In the present investigation, it is aimed to formulate plans for increasing the capacity of the countryʹs energy production. Analysis of energy consumption pattern over last decades is indicative of inefficient usage. The low energy prices in Iran do not reflect economic costs. Further distortions exist in the tariff structures of most energy sources and in their relative prices. It is recognized that price reform is a key policy element for promotion of energy conservation and fuel substitution with renewable energies. Mitigation policies in the energy sector are crucial to Iranʹs overall policies. Emission of greenhouse gases can be reduced from 752,156 to 560,791 Gg CO2 equivalents in 2010 by implementing the policies proposed for the energy sub-sectors. Enhancing energy efficiency, including combined cycle power generation, has proved to be the most economic option for greenhouse gases reduction in energy sector. Iranʹs energy consumption pattern is unsustainable and consumption oriented.