2 December 2025 - 12:45
  • News ID: 954312
92% of Iran’s power generated from fossil fuels

SHANA (Tehran) – The deputy oil minister for engineering, research and technology said more than 92% of the country’s electricity production relies on fossil fuels, adding that the government is pursuing a new path aimed at expanding renewable energy and easing pressure from the nation’s energy imbalance.

Omid Shakeri spoke Tuesday on the sidelines of a joint technical meeting between the Oil and Energy ministries on solar power development. He told reporters that the meeting focused on ways to expand solar power plants in the oil industry. Since last year, he said, following an order by the president and a mandate from the Supreme Energy Council, the construction of solar facilities at government buildings has been placed high on the agenda, and the oil minister has emphasized it strongly.

Shakeri said that under the council’s directive, government agencies are required to supply 20% of their buildings’ electricity from solar power. “This target has been set for the oil industry as well and our responsibilities are clear, but our plans go beyond legal obligations,” he said.

A Symbolic but Crucial Step for Energy Diversification

Explaining why Energy Ministry representatives attended the meeting, Shakeri said they were invited to brief oil-industry officials on project implementation methods, financing models and available legal incentives, with the aim of accelerating solar development across the sector.

He said the oil industry plays a symbolic but significant role in advancing renewable energy. “The Oil Ministry’s main task is supplying energy—mainly oil, gas and petroleum products—but developing solar plants is a symbolic action toward diversifying the country’s energy mix. It is something that should have started years ago, and the 14th government is now pursuing it seriously,” he said.

Responding to a question about electricity consumption in the oil sector, Shakeri said power use is high. He said meeting the legal obligation to supply 20% of electricity from solar power will require roughly 140 megawatts of new solar capacity, a figure that has already been planned and is being pursued across the four main oil, gas, refining and petrochemical companies.

Petrochemical Firms Ready to Build 5,000 MW of Solar Capacity

Shakeri added that, in addition to government requirements, private petrochemical companies have expressed readiness to build more than 5,000 megawatts of solar capacity. “This shows the oil industry is investing seriously in renewable energy beyond its core responsibilities,” he said.

Companies must fund building-related solar projects from their own resources, he said, but the government has arranged financing pathways for larger, multi-gigawatt projects. Energy Ministry officials explained that up to 70% of investment costs for such projects can be provided as loans.

Shakeri highlighted the growing role of the green electricity market, saying the “green power board” mechanism is now well established and allows investors to sell renewable electricity at attractive prices without relying on government funds, making these ventures sustainable.

Efficiency: A Principle That Must Not Be Overlooked

Shakeri said earlier estimates put the nation’s solar capacity potential at 15,000 megawatts, but current efforts show the true potential is far higher. He added that building solar plants is the responsibility of the Energy Ministry and SATBA, and the Oil Ministry fully supports the effort because more solar production helps reduce the energy shortfall.

On the issue of energy efficiency, Shakeri said it must always be treated as a “sacred principle.” He noted that the 14th government is paying strong attention to this, and the president holds weekly meetings on reducing the natural gas imbalance.

He said the Seventh Development Plan sets a target of 12,000 megawatts of new renewable capacity, but this is the first time a government is aiming higher than the parliament’s mandate. “The reports are very encouraging,” he said.

Public Awareness and Energy-Use Culture

Commenting on studies of household energy consumption patterns, Shakeri said culture-building must be comprehensive. He said he has not yet seen the Energy Ministry encourage households to shift toward solar use, but the core message to the public remains the same: use energy efficiently. “Even if people have not yet switched from gas to solar, the natural gas we have must be used properly,” he said.

Shakeri concluded by repeating that more than 92% of the nation’s electricity is generated from fossil fuels and that this trend must change. “We hope the path now underway will expand the share of renewable energy and reduce pressure from the energy imbalance,” he said.

News ID 954312

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