Ali-Asghar Rajabi said the regulation paves the way for implementing approved initiatives under the Energy and Environment Optimization Market.

Citing international experience, Rajabi said the entry of operator firms into energy markets has been shown to boost competition, diversify supply and lower prices for consumers. He said such companies play an effective role in improving energy efficiency by offering innovative services and using modern technologies.

Rajabi pointed to the United Kingdom, where a gas market was formed in the late 1980s. In that model, operator firms play a key role in gas imports and distribution, and targeted liberalization has led to greater competitiveness and lower prices, he said.

Strict oversight of private sector

Rajabi also cited Germany’s experience with delegating gas distribution to private companies, saying strict oversight ensures fair service delivery and quality standards. Financial support for operator firms has also contributed to infrastructure development, he said.

He noted that despite the issuance of the Energy and Environment Optimization Market bylaw in 2017, the pace of efficiency projects and contracts with investors acting as “savings agents” had fallen short of expectations.

However, Rajabi said follow-up actions by NIGC and the acceptance of natural gas savings certificates on the Iran Energy Exchange in 2024 effectively launched the optimization market.

He said multiple projects had been approved by the market’s savings commission, particularly in high-waste sectors such as brick production, but contracts had not been signed for various reasons. The new operator firm bylaw has streamlined and accelerated implementation by facilitating agreements with investors serving as gas operators, he said.

Rajabi said the impact could be significant in sectors including brick manufacturing, poultry farming, bakeries and greenhouses.

Transparency in upstream documents

Rajabi emphasized transparency, saying NIGC has published calls for participation, legal texts, step-by-step implementation flowcharts and contract templates on its official website.

He added that baselines and methods for calculating verified savings are clearly defined in the Oil Ministry’s Measurement and Verification (M&V) guidelines.

Operator firms are contractually obligated to achieve specified annual savings targets, with savings certificates issued only after verification of results, Rajabi said. Enforcement mechanisms and penalties for noncompliance are explicitly outlined in Oil Ministry contract models, providing assurance for accurate project execution.

Rajabi said expanding the role of operator firms is a strategic step toward reducing energy intensity, improving efficiency and advancing modern energy governance.