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Energy as a Source of Iran’s Funding

Iran is the second nation in the world to have the biggest oil reserves and the third biggest exporter. Iran has abundant fuel that generates energy. As from 1913, Iran has been the primary country for oil exports. Due to the presence of cheap energy in Iran, there is so much wastefulness and many smuggling businesses. Because of the increased production of vehicles; the demand for petrol has gone up significantly.

Iran comes third regarding producing natural gas globally, which is essential for the production of heat and generation of domestic electricity. The production of gas in this country is bound to increase in the next years because of the continuing discoveries of new regions. The Iranian government has significantly reduced gasoline and natural gas prices so that it can meet the growing needs of its local consumers. Due to this increased demand both domestically and international of natural gas, production must also increase.

Producing and consuming electricity locally in Iran has significantly increased ever since 1984 and mostly depends on the traditional sources of thermal energy, with very little energy coming from hydroelectric plants. Thus, it is vital for Iran to do everything within their power to ensure that there is enough energy in the world to meet the growing demand. Iran has accomplished to gain the technical expertise required to set up gas, hydroelectric and combined cycle power plants. This nation has not just taken up projects within the country, but also other energy-related ventures in the neighboring countries.

There are varied and wide efforts to explore the sources of power in Iran. The electricity sector is highly subsidized with most of the power generation, transmission or distribution handled by the government-owned companies. So that they can meet the demands of this electricity sector, Iran is starting to look into the private investments. Although many individuals criticize the procedures used to generate electricity in Iran, it is true to say that the current state is much better in terms of conserving the environment than in the past years. Some of the elements that have led to the increased demand for electricity include the heightened industrialization as well as the demographic trends. Owed to the increased demand of energy, Iran has indulged in generating nuclear energy. This country is also making concerted efforts to make renewable energy viable commercially with the help of the Ministry of Energy. Most of the water turbines used to generate hydropower are made locally in Iran which therefore generates income and meets the clients’ energy needs. Other sources of energy in Iran include biofuel, wind, solar, and geothermal energy.

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