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Energy efficiency potentials in Iran: a precise look to one of the biggest energy producers

Panel: 1. Foundations of future energy policy

This is a peer-reviewed paper.

Authors:
Ali Khodamoradi, Iran Productivity Association, Iran
Faraz Sojdei, Iran

Abstract

"Energy Efficiency Market report 2016" of International Energy Agency (IEA) estimates that global investment in energy efficiency, i.e. the additional investment required for efficient products, grew 6% in 2015 to 208 billion Euros. Investment in buildings was over half of the total investment in efficiency and experienced the strongest growth at 9%. Investment in industry grew by 6% and transport grew by 3%.

In another report called "Capturing the Multiple Benefits of Energy Efficiency", IEA focused on its benefits beyond just reducing energy use and emissions, including overall sustainability, economic and social development, and increasing prosperity.

Iran has one of the greatest resources of fossil energy in the world. Statistics show that Iran with having 21.4 billion metric Ton oil equivalent is in 4th place and 1st place in Natural gas and totally by having 82.5 Btoe, is the 3rd country in terms of possessing fossil fuels (oil, gas and coal). On the other hand, this country is the 3rd consumer of natural gas and 12th consumer of crude oil in the world. By comparing energy intensity of Iran between years 1999 to 2009 for supply of primary energy to GDP, it would be seen that energy intensity (without considering production losses) has reached to 1.97 TPES/GDP in year 2009 with a slight slope, which shows economic growth and development from one hand and failure in energy efficiency on the other hand.

Based on Iran’s policies for “Reform of Energy Consumption”, energy intensity should be halved till 2021 compared to amount of the base year 2011. In this way the cumulative energy saving in the country is estimated to reach around 1230 million metric Ton which is approximately 5 times of the primary energy supplied to the country in 2009. As a result, Iran could avoid the threats of the energy shortage in buildings, industries, transportation, and agriculture sections.

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