Iran ranks second regarding possessing the largest oil reserves and is also the third top exporter of the product globally. There are varied kinds of fuels in Iran that produce energy for local consumption and exportation. Starting in 1913, Iran has led in exporting oil to the different parts of the world. Owed to the availability of cheap energy in Iran, there is not just too much wastage, but also too many smuggling cartels of the different fuels. The demand for fuel has gone up because there are so many cars being produced on a daily basis in the world.
Iran comes third regarding producing natural gas globally, which is essential for the production of heat and generation of domestic electricity. This nation is bound to increase the production levels of its energy since new resources are being found every waking morning. The country’s government has subsidized the prices of natural gas as well as gasoline prices, and this is meant to sustain the high consumption in the domestic field. When the domestic demand increases, chances are high that the exports will also go up.
Production and local consumption of energy in Iran has grown significantly and still depends highly on the conventional methods of thermal energy with few firms producing hydroelectric power. Therefore, it is paramount that Iran strives to meet the growing demand for energy in the globe. Iran has successfully implemented strategies to help in the construction of hydroelectric and gas plants in a bid to meet all customer needs. Iran is not only focused on amassing all the power within its state but has also crossed borders and taken up varied projects in the bordering countries.
There are varied and wide efforts to explore the sources of power in Iran. The electricity industry is heavily subsidized, and in most cases, the state-owned firms control the generation, transmission and distribution of power. To ascertain that all the growing requirements of the different consumers are met, Iran is beginning to embrace the private investors and companies. Even though some people criticize Iran’s hydroelectric power procedures as potentially harmful to the environment, most agree that the current state of the country’s hydroelectric production is better 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. The Ministry of Energy in Iran is also focused on producing renewable energy a commercially viable energy option. 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 common energy sources in Iran include geothermal energy, biofuel, solar and wind energy.