Economic challenges of reforming energy sector: Production constraints or energy inefficiency?

GPTT hosted a session on “Economic challenges of energy reform” on May 29, attending distinguished experts discussing the issue. Dr. Abbas Maleki, a professor of policy-making in energy at Sharif UT emphasized that after 2050, the world will no longer allow the use of fossil fuels, and the use of these energies will become obsolete. He suggested that currently, Iran must follow the path of development with the wealth obtained from oil and gas and its products and be careful about the proper distribution of this development, since currently, economically, no natural substance has the export value of oil. “Energy should find its owner in Iran.” Dr. Maleki stated. “An institution at a higher level than ministries should be established to make energy policies. The annual financial turnover of energy available in Iran is 300 billion dollars. Isn’t this amount worth monitoring, controlling, and making policy in a detailed and comprehensive way?!” Also, Dr. Sadegh Karimi, the head of the energy office at the Budget and Planning Bureau mentioned that until now, Iran’s policies have leaned towards production management and it has been thought that we should answer the demand with production. But now the energy sector should be changed so that the consumption pattern also be changed. In the 7th Development Plan, an institutional solution is designed to solve the energy problem, but only one part of the problem requires institutional or structural reform.

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