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. Since the year 1913, Iran has been the main oil exporting country. Cheap energy has led to wasteful consumption in Iran and brisk petrol smuggling business in the neighboring countries. The demand for this product has gone high owed to the rapid increase in car production in recent years.
Iran is also the third producer of natural gas in the globe; which is majorly used for heat production and domestic electricity generation. This country continues to increase its production levels because there are new regions that are being discovered on a day to day basis. The government of Iran has reduced the cost of natural gas and gasoline which is supposed to maintain the domestic consumption of this product. Because of the increased domestic demand, the exports of natural gas are bound to go up in the next years.
The production and domestic consumption of electricity in Iran has grown steadily since 1984 and is highly dependent on the traditional sources of thermal energy, with a tiny percentage being produced in the 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 country is not just self-sufficient in constructing power plants in the nation but has also taken up other similar contracts in neighboring states.
The exploration efforts of new power resources in Iran are both extensive and diverse. The electricity field is subsidized and the control of its generation, distribution and transmission is in the hands of corporations owned by the state. 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. To meet all the increased energy needs of clients, Iran has also embraced production of nuclear energy. Iran is working hand in hand with its Ministry of Energy to ensure the world does not run out energy by embracing renewable sources of energy. Hydropower is crucial in Iran since it provides the needed energy and also generates income for the state since the water turbines are constructed locally. Other common energy sources in Iran include geothermal energy, biofuel, solar and wind energy.