Omid Shakeri, deputy oil minister for engineering, research and technology, said at a joint Oil and Energy Ministry meeting on the development of solar power plants that the 14th government has begun a new path by simultaneously focusing on renewable energy expansion and energy efficiency.

He said government agencies and public institutions began discussing the construction of solar power plants last year, and the initiative has since moved onto the government’s priority agenda with strong support from the president and follow-up by the Oil Ministry.

Shakeri said the president has specifically emphasized a shift toward clean energy. “We hope new opportunities will emerge for developing solar power plants across different segments of the oil industry, especially as the global movement toward clean energy is intensifying,” he said.

Heavy Dependence on Gas Cited as Root of Current Imbalance

Reviewing the past decade of energy policymaking, Shakeri said nearly all development — from households and industry to power generation — relied heavily on natural gas “as if the country’s gas reserves were limitless.” He said the outcome is today’s energy imbalance and a historic failure to diversify the energy mix.

He said gas consumption at thermal power plants rose from 63 billion cubic meters in 2012 to more than 94 billion cubic meters in recent years, equal to the output of four phases of the South Pars gas field. Despite this heavy use, he said, renewables still account for a negligible share of the energy portfolio.

“Iran is the world’s third-largest producer of natural gas, but consumption growth has outpaced production increases,” he said.

Warning of Worsening Imbalance and Rising Costs

Shakeri warned that pressure in the South Pars gas field will decline in the coming years. He repeated the oil minister’s recent statement that the South Pars pressure-boosting project is “more essential than bread,” given that the field supplies around 70 percent of the country’s gas.

Without simultaneous management of supply and demand, he said, the imbalance will widen each year. During peak consumption, the gap already exceeds 300 million cubic meters per day.

If the trend is not corrected, he said, a large portion of government revenue — which should support development and household welfare — will instead be diverted to fuel imports. “Industry and businesses will also face serious constraints,” he said.

 Inefficiency in Power Plants Underscores Need for Optimization

Shakeri criticized the lack of consistent energy policy over the past three decades, saying energy must be treated as a nationwide strategic issue requiring coordinated policymaking. “You cannot fix only the electricity imbalance or only the gas imbalance — these sectors must move together like interlocking gears,” he said.

He noted that thermal power plants currently operate at about 39 percent efficiency, below the 45 percent target set by law. He said the 6-percent gap results in an additional daily consumption of about 32 million cubic meters of gas — equal to the production of roughly one-and-a-half phases of South Pars.

He said diversifying the energy mix is essential and that developing solar energy is one of the government’s key strategies. Under the Seventh Development Plan, 12,000 megawatts of renewable capacity must be added, and he said the government’s plans exceed that target.

 Clean-Energy Mandates and Ongoing Projects

Shakeri pointed to legal obligations such as the Knowledge-Based Production Surge Law and decisions of the High Energy Council. Under council requirements, government agencies must supply 20 percent of their electricity from renewables within four years — about 140 megawatts for the Oil Ministry.

He said the ministry has already allocated significant funds from gas-savings bonds to renewable projects. The ministry’s four main companies and their subsidiaries are now advancing solar-plant development.

He said the petrochemical sector, led by private industry, plans to build 5,000 megawatts of solar capacity. The National Iranian Gas Company has completed 2.5 megawatts and is constructing 120- and 40-megawatt plants. The National Iranian Oil Products Distribution Co. is pursuing solar projects as well, and the National Iranian Oil Co. has proposed a combined 110-megawatt solar program.

Shakeri said the Oil Ministry is pursuing solar development and energy efficiency in parallel with gas-field development and pressure-boosting projects. With participation from all government bodies, the public and the private sector, he said, solar expansion can play a significant role in reducing the energy imbalance and diversifying the country’s energy mix.