Iran's electricity crisis: Calls for rationing and fears of public discontent

Presidential call to rationalize electricity consumption in Iran

Iranian President Masoud Pezeshkian directly appealed to Iranian citizens to conserve electricity, a move reflecting the growing challenges facing the country's energy sector. In a televised address, Pezeshkian warned of what he called "plots" led by the United States and Israel aimed at inciting "popular discontent" by exploiting any potential shortages in basic services, while asserting that there is currently no energy shortage.

Pezeshkian said, “We ask our dear people, who are ready and present in the field, for a simple favor: to reduce their electricity and energy consumption.” To illustrate the simplicity of the required measures, he added, “Instead of turning on ten lights, you should turn on two in your home. What’s the problem with that?” These remarks come at a time when Iran frequently experiences power outages during peak consumption periods in the summer and winter, impacting daily life and economic activity.

General context: An energy crisis in a resource-rich country

Iran is one of the world's richest countries in natural resources, particularly natural gas, which it relies on to generate approximately 80% of its electricity needs, according to the International Energy Agency. However, Iran's energy sector suffers from deep-seated structural problems that have persisted for decades. Infrastructure, including power plants and transmission networks, is outdated and lacks regular maintenance, reducing its efficiency and its ability to meet growing demand.

This problem was exacerbated by stringent international sanctions, which severely restricted Iran's access to modern technology and spare parts needed to upgrade its power plants, and hampered the flow of vital foreign investment needed to develop the sector. This situation created a paradox: a country with vast energy reserves struggles to provide a stable electricity supply for its citizens.

The importance and expected impact of the crisis

Domestically, the electricity shortage poses a significant social and economic challenge. Frequent power outages negatively impact factories and businesses, causing economic losses and disrupting citizens' daily lives. These living conditions, including the lack of basic services, often spark protests and social discontent, which explains the president's warning about foreign "plots" aimed at exploiting the situation to turn satisfaction into resentment.

Regionally and internationally, the energy crisis limits Iran’s ability to play a larger role as an energy supplier in the region, despite its vast potential. Accusations against external actors of targeting infrastructure are also part of the ongoing geopolitical tension between Tehran and its adversaries, where the stability of vital services is viewed as a matter of national security. Under these circumstances, the government’s call for rationing appears to be a temporary solution to a problem that requires massive investments and long-term structural reforms—something difficult to achieve amidst international isolation and economic sanctions.