Iran enforces rolling power blackouts as fuel shortages bite

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Iran has started implementing rolling power blackouts across the country as the Islamic republic struggles with a shortage of natural gas ahead of winter.

Two-hour daily outages will be enforced in Tehran, the capital city that is home to 9.5mn people, from Monday and will affect homes and businesses, local media reported. Several provinces were also hit by the power cuts on Sunday.

Iran is suffering from an energy supply crunch despite having the world’s third-largest oil reserves and second largest natural gas reserves. Years of under-investment in electricity generation and poor maintenance of existing infrastructure have resulted in recurrent power blackouts during summer, when hotter temperatures led to a surge in the use of air conditioning. 

The power cuts also follow a decision to ban mazut, a high-polluting fuel oil, at three power plants in Arak, Isfahan and Karaj. The alternative to natural gas has contributed to high levels of air pollution in Iran. 

“By halting the burning of mazut at three thermal plants, the government is bound to implement scheduled blackouts across the country,” said Shina Ansari, vice-president and head of the environment department. “This is a valuable step towards reducing the health risks associated with air pollution.”

As temperatures drop in winter, Iran’s supply of natural gas is insufficient to meet surging demand, so its power plants are forced to rely on mazut as feedstock. Experts estimate that the country will face a natural gas shortfall of at least 260mn cubic metres a day this winter. It is in talks to increase imports from neighbouring Turkmenistan.

Iran’s energy crisis is exacerbated by sanctions on its nuclear programme. Since taking office in July, President Masoud Pezeshkian has left the door open to talks with the US and other western countries with the hope of securing some sanctions relief.

After Donald Trump won a second term as president this week, Pezeshkian said “it will make no difference” who will lead the US, arguing that Iran “will not apply a limited view to the development of relations with other states”. In his first term, Trump withdrew the US from Iran’s 2015 nuclear deal with world powers and reinstated sanctions as part of his “maximum pressure” campaign against Tehran.

Sanctions impede Iran from building new power plants or optimising grid operations. Industry experts say some power stations need to be overhauled or replaced.

Ahmad Moradi, a member of the parliament’s energy committee, said on Sunday that the national grid had a shortfall of 20,000MW of electricity, which he blamed on “insufficient generation capacity, problems at power stations and ageing transmission lines”. 

The Islamic republic is also seeking to manage high demand for petrol, which is blamed on fuel inefficient domestic cars, substandard fuel quality and inadequate public transport, amid limited refining capacity for the motor fuel.

Iran has one of the world’s cheapest petrol prices at about $0.02 a litre. Pezeshkian has questioned the viability of huge subsidies on petrol, fuelling speculation of a rise in prices next year.