The energy crisis in Iran is escalating, with many Iranians openly acknowledging its severity. A severe cold spell has hit the country at a particularly inopportune time for the Islamic Republic.
In recent weeks, the Iranian government has implemented drastic measures in an attempt to manage the situation, with limited success: schools have switched to online learning, universities have shut down, and President Masoud Pezeshkian has publicly urged citizens to lower their thermostats by at least two degrees. Additionally, the foreign ministry has suggested that officials wear warmer clothing to save energy.
For ordinary Iranians, the crisis is worsened by their shrinking purchasing power; as of Thursday, December 19, the national currency, the Iranian rial, has plummeted, with the exchange rate reaching 775,500 rials to one US dollar in open markets.
Iran]s energy minister highlighted the gravity of the situation on Wednesday, reporting that 13 major power plants are out of service due to fuel shortages. The alternative is to use cheap, low-quality-and low-yield heavy oil for the power plants that in turn contributes to yet another lingering issue that Iran has been facing - disastrous pollution in the major cities that is responsible for an acute health crisis.
One option that Iran can turn to is make use of gas that otherwise is wasted by gas flaring: it is the process in which the excess gas produced during extraction of petroleum products from wells are just burned out as a way of removal. Not only is it a waste, but also a significant contributor to air pollution. Iran, the US and Iraq are at the top of a league of their own, when it comes to gas flaring. Iran, however, has neither the infrastructure nor technology for taking such a quantum leap and to use the excess gas for constructive use.
The unannounced power outages, which can last for hours, have left ordinary citizens frustrated, and the industrial sector, from small businesses to large corporations, faces rolling blackouts, further damaging an economy already strained by heavy international sanctions.
This crisis isn't entirely unexpected; Iran experienced energy shortages in the summer as well, when subsidized gas was used for air conditioning to combat extreme heat.
Currently, Iran faces not only an energy crisis but also political and military challenges. The influence of Iran-supported groups like Hamas and Hezbollah has diminished, and the country has lost its long-standing ally, Syria. Meanwhile, threats from Israel have escalated.
Amid these conditions, the Iranian populace is questioning the enduring economic hardship in a country that holds the world's second-largest gas reserves and fourth-largest oil reserves. There are increasing reports of unrest in certain regions due to falling living standards, rampant inflation, and now, an acute energy crisis.
The Iranian government must address these issues urgently, as the incoming US administration, known for its hardline stance, could further complicate matters for Iran. When the country is sandwiched between a rock and a hard place, there are not many options left for it to pull off a miracle.
