Iran Falling Behind in Regional Power Generation

Power cuts have become increasingly common in Iran. The hotter southern regions experience them in the summer and while wintertime power cuts mostly affect the northern parts of the country. These power cuts have not only impacted households but also have disrupted industrial production at a time when the economy needs every bit of extra productivity. Such power cuts are not so common in nearby countries like the United Arab Emirates or Saudi Arabia. Iran is falling behind its regional competitors in terms of power generation. 

Figure 1 shows the comparison of total power generation in the three largest economies in the Persian Gulf region: Saudi Arabia, Iran and the UAE. As can be seen, Saudi Arabia’s power generation is 15% higher than Iran, while Iran retains more than twice the power generation capacity of the UAE.

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However, a true comparison should take into account the populations of each country, or per capita power generation. Figure 2 shows that Saudi Arabia’s per capita power generation is almost three times higher than Iran. The UAE’s is more than four times higher.

 

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This comparison indicates that Iran is significantly lagging behind its closest peers in the region. Constructing several new power stations will not fill this gap.