Iran's energy sector review

By  Dalga Khatinoglu The peak electricity demand in Iran and its neighbor clients Afghanistan and Iraq happens in warm months, but during this period last year Islamic Republic’s exports plunged due to high demand at home. Its electricity imports from Armenia and especially Turkmenistan have been declining dramatically since September. This is possibly due to U.S. banking sanctions, which restrict Iran’s ability to pay its bills. During international sanctions prior to the nuclear deal (2011-2016), Iran was also unable to pay for Turkmen gas and electricity imports, running up $2bn in debts. Iran’s electricity trade during last and the previous fiscal years (GWh/month): ​ Power Generation Iran increased nominal power generation capacity by 2.3% last year; less than half of projected growth, but its actual electricity generation increased by only 1% to 312 TWh, a fifth of projected plan. The growth rate for actual power generation is far below nominal capacity, because

Iran’s Oil Ministry officially opened four new phases of the South Pars gas field March 17, citing production and investment figures that don’t add up. The nominal production capacity of the newly opened phases 13, 22, 23 and 24 is 113 million cubic meters per day (mcm/d), but currently they are producing about half of that. The processing units of these phases are also operating at half capacity most probably due to Iran’s technical limitations compounded by sanctions. Phase 13 is projected to produce 56 mcm of natural gas and 75,000 barrels of gas condensate (ultra-light oil) per day, when it becomes fully operational. The capacity of phases 22-24 are together equal to phase 13. The Oil Ministry said all phases will be operating at full capacity within one year. According to Oil Ministry’s statement, some $10 billion were invested in the mentioned four phases, but ministry officials put the figure at $11 billion during the inauguration ceremony, which President Hassan Rouhani