• General State of the Economy
• Energy Resources
• Energy Balance
• Energy Infrastructure
• Education and Innovation
• Ecology and Environment Protection
• References

Iran, the official name – the Islamic Republic of Iran, is one of the largest countries in the Middle East with its capital in Tehran. Neighbouring countries are Iraq (in the west), Azerbaijan, Armenia, Turkey, Turkmenistan (in the north), Afghanistan and Pakistan (in the east). Iran has access to the Caspian Sea, the Persian and Oman Gulfs.

Source: [1,2,3.4.5]

According to 2023 statistics, the country, which is 18^th in the world in terms of area, is home to more than 89 million people. In terms of population density the country is 163^rd in the world [1,2,3]. The total length of the country's coastline is 2 440 km, and 740 km along the Caspian Sea [3].

Skyline of Tehran at sunset. Envato Elements. CGTZNPE2SL

The administrative map of Iran is divided into 31 provinces and the political form of government – Islamic republic. The official language is Persian [3]. The country's economy is based on its energy, agrarian, and industrial sectors, as well as its service sector.

Iran has one of the largest reserves of proved oil and natural gas reserves (see Table 1). According to data for 2024, in terms of tons of oil equivalent, conventional proved reserves by fuels broke down as follows: natural gas – 51.1%, oil – 47.5%, coal – 1.4% (Fig.5).
According to the U.S. Energy Information Administration [17], as of 2024, the proven oil reserves were 209 billion barrels, and according to [3,7] at the beginning of 2021, they were estimated at between 208.6 – 157.8 billion barrels.

Table 1. Fossil energy resources of Iran

*share of the country’s reserves in world total is provided in brackets

Proved natural gas reserves in Iran at the end of 2023, according [17], were estimated at 1,200 Tcf. Petroleum Ministry of Iran is reported to own 159 billion barrels of crude oil in place, and holds 431 billion barrels of oil equivalent, ranking first in terms of hydrocarbon reserves in the world [8]. Coal reserves in 2023 were estimated at 1 326 million short tons [6].
Iran has a variety of renewable resources for energy production. The sample of key indicators of this type of resource is presented in Table 2.
The level of global horizontal irradiation for the majority of the country is low – 5.5-6.0 kWh/m²/day, the maximum level of solar radiation of 6.0-6.3 kWh/m²/day can be registered in the south-eastern part of the country [10]. The distribution of wind resources is as follows: for the majority of the country the wind speed does not exceed 6.0-7.5 m/s, and in the eastern part of the country, in the provinces of South Khorasan as well as along the borderline with Afghanistan at a height of 50 m, wind speed can reach over 7.5 m/s [11].

Table 2. Renewable energy resources of Iran

 *for most of the territory of the country
**technically exploitable capability

Technically exploitable hydropower capability was estimated at 50 000 GWh/year in 2013 [12], which theoretically allows intensive use of hydro resources for electricity generation.
About 29.0% of Iran is covered by agricultural land, and 6.6% is forested [13,14]. Iran also has potential for geothermal energy, estimated by [15] in 2015 at 800 GWe. The level of generation of municipal waste in Iran (0.60 kg per person per day) is significantly lower than in other countries of the region, for example, Saudi Arabia (1.40 kg per person per day). This resource can be a valuable raw material for secondary use or energy production.

IRAN, ARAK
Latitude: 34.14, Longitude: 49.85

Average daily sky coverage over 10 years of observations, %

CLR - clear, SCT - scattered from 1/8 TO 4/8, BKN - broken from 5/8 TO 7/8, OVC - overcast, OBS - obscured, POB - partial obscuration

Source: based on NOAA U.S. Department of Commerce
Detailed information: Interactive map of solar resources

IRAN, YAZD SHAHID SADOOGHI
Latitude: 31.91, Longitude: 54.28
Average speed: 2.60 m/s, Operational share: 46%

Average daily wind speed for 10 years of observations, m/s, 10 m above the ground

Source: based on NOAA U.S. Department of Commerce
Detailed information: Interactive map of wind resources  

Electricity production in Iran in 2023 was 375.71 TWh, dominated by fossil fuels – 94.6%; the share of hydropower was 3.4%, nuclear power – 1.6%, renewable resources – 0.4% (Fig.6).
Iran’s position in the comparative diagram of energy index is shown in Figure 4. As already mentioned, Iran has significant reserves of fossil resources, so the first six indexes are mostly in the top quarter of the chart, therefore, among the top 25% of the best countries in the world included in the rating.
The share of renewable energy in electricity production in Iran is about 0.4%, and the country was 159^th out of 166 countries selected for consideration.

A territorial map of the distribution of the largest infrastructure projects of the fossil fuel sector in Iran is shown in Figure 5.
As mentioned above, the proven reserves of natural gas account for 51.1% of the total energy potential of the country's mineral resources, crude oil reserves– 47.5%, coal 1.4% (Fig.5).
The main oil and gas fields are located in the west and south-west of the country in coastal areas. The South Pars gas field, which is located on the border between Iran and Qatar in the Persian Gulf, contains about 14 trillion m³ of natural gas and 18 billion barrels of gas condensate, which is about half of the gas reserves in Iran. South Pars field daily produces 790 million m³ of natural gas [18]. The largest oil field – Ahvaz, owned by the National Iranian South Oil Company, potentially possesses 65.5 billion barrels, and production is carried out at the level of 750 000 barrels/day [19].

Aerial view oil ship tanker carrier oil on the sea at sunset. Envato Elements. G3TWHVZE5L

Iran's refineries have a total installed capacity of 1 901 million barrels/day (Fig.5). The country's largest refinery is Abadan, owned by NIORDC, with an installed capacity of 399 000 barrels/day [20]. The main oil terminal of Iran is Khark Oil Terminal, which can ship up to 8 million barrels a day, and the largest oil storage is Kharg Island (28 million barrels) [21]. Crude oil is transported through pipelines with a total length of 8 625 km. The total length of oil product pipelines is 7 937 km, and transportation of liquefied hydrocarbon gas is carried through pipelines with a total length of 570 km (Fig.5).

Figure 5. Basic infrastructural facilities of the fossil fuel sector in Iran (click on the map to view a PDF version)

The natural gas processing infrastructure in Iran is represented by 8 large, and several smaller plants (Fig.5). The most powerful of these is Kangan-Nar with an installed capacity of 80 mcm/d [22]. The country's first LNG-terminal, Iran LNG, which is currently under construction, will have an installed capacity of 10.8 million tons per year and will be located in an area of ​​200 hectares on the western coast of the Islamic Republic of Iran in Tombaka [23]. Natural gas is transported through pipelines with a total length of 20 794 km; transportation of gas condensate is carried through pipelines with total lengths of 973 km and 7 km (Fig.5).
In 2014, GTL QESHM was established in Iran to build the first GTL plant in the country. In the free zone QESHM, with a area of 40 hectares, the company is continuing to build a plant with an installed capacity of 3 000 barrels of various petroleum products per day, with the possibility of expanding to 12 000 barrels per day [24]. Zagros Petrochemical Company methanol plant with an installed capacity of 3 300 000 tons/year is located in the economic zone of South Pars in the city of Assaluyeh [25].
The annual production of uranium from the Saghand mine located in Yazd in the central part of Iran is about 50 tons per year. The reserves of this field are estimated by experts of the IAEA to be at 1 000 tons [26]. Coal production from the country's largest field, Eshkli, is maintained at the level of 360 000 tons per year [27].
The map of the territorial distribution of Iran's largest infrastructure facilities for electricity generation is presented in Figure 6.
According to U.S. Energy Information Administration the share of fossil fuels in electricity production in Iran in 2023 was 94.6% (Fig.6).
The country has a significant number of stations for the production of electricity from fossil fuels, including six oil stations with a capacity of more than 500 MW, ten gas-fired power plants with more than 1 000 MW, nine combined-type power plants with a capacity of more than 500 MW, and one nuclear power plant (Fig.6). The largest gas power plant is Damavand, with an installed capacity that has been estimated at 2 862 MW [28], oil – Shahid Montazeri, with an installed capacity of 1 600 MW [29], combined type – Shahid Salimi with an installed capacity of 2 195 MW [30,31], Nuvlear – Bushehr-1 with a capacity of 915 MW [32].
As mentioned above, the hydropower industry in Iran does not have a significant share in the generation of electricity, it is represented by several hydro and pumped storage power plants, that altogether produced 12.65 TWh in 2023 (Fig.6). The generation leader among the hydroelectric power stations is Karun-3 with an installed capacity of 2 280 MW [33]; among the pumped storage power plants – Siabisheh, with an installed capacity of 1 040 MW [34]. In addition, in the country, as of early 2021, there are about 10 small hydropower stations with a total capacity of 19.5 MW (Fig.6).

Figure 6. Electricity production in Iran (click on the map to view a PDF version)

Figure 7 shows the main infrastructure facilities of Iran for the production of renewable energy.
Renewable energy, excluding hydropower, has a minimal share in electricity production in Iran, the total electricity production from renewable sources was 1.4 - 1.62 TWh in 2022-2023 (Fig.6 and 7).
In the coastal areas and in the north-east of the country, in the zones of relatively high wind activity, there are 6 large wind farms with a capacity of more than 1 MW each. In 2023, Iranian wind farms had a total installed capacity of 360 MW [Fig.7]. The largest is Manjil with an installed capacity of 90.2 MW [36].
As mentioned earlier, the level of global horizontal solar irradiation in some regions of the country can reach 6.3 kWh/m²/day, which is a significant resource for the production of energy through photovoltaics [10].
Figure 7. Renewable energy in Iran (click on the map to view a PDF version)

As a result, there is a number of solar energy facilities including 4 photovoltaic stations with a capacity of more than 1 MW each and CSP parabolic type plants (Fig.7). The largest photovoltaic station is the Mokran PV Solar Power Plant, opened in 2017, with an installed capacity of 20 MW [37], and the largest parabolic type station is Yazd CSP with an installed capacity of 17 MW [38].
As previously mentioned, Iran possesses no significant geothermal potential. In 2017, Moshanir plans to launch the first geothermal power plant in the country at the Meshkin-Shahr Single Flash Geothermal Power Plant on the slope of Mount Sabalan in northwestern Iran, which has an installed capacity of 5 MW with a possible increase in power to 25 MW [39].
Bioenergy has not received active development in the country to date, and in 2022, only 0.02 TWh was generated from biomass (Fig.8). The country has biogas and biodiesel plants. The Qeshm Island plant, owned by Iran Biodiesel Kish Co in 2009 uses CVR technology (Cavitation Reactor) and can produce 350 000 million tons of biodiesel [40]. Tehran Wastewater biogas power plant, which produces biogas from wastewater and waste to generate electricity, has an installed capacity of 5 MW [41].
In order to achieve the long-term sustainable development goals, Iran aims to produce 2,500 MW from renewable energy sources. Despite the country's deep potential for renewable energy development, especially solar energy, progress in uptake is very slow and Iran has built less than 75 MW of renewable energy in 2023 [42]. Iran took part in the Paris Agreement on Climate Conservation and pledged to increase the capacity of the renewable energy sector to 7 500 MW by 2030 [43].
The country is actively engaged in attracting foreign investment, so in 2016 Germany invested about 170 million euros for the development of solar energy in Iran [44]. Also in the field of solar energy, it is worth noting the planned construction of a 20 MW solar park in the Kurdistan Province [45] and the commissioning of a 5 000 W Karoon Oil and Gas Solar Power Plant by the oil company for its own needs [46].
In the field of hydropower, it is worth noting the opening of the 450 MW Rudbar Lorestan hydroelectric power station and the construction of 130 MW Chamshir hydroelectric power stations in the province of Kohgiluyeh-Boyer Ahmad and the Bakhtiari station with a capacity of 750 MW in Lorestan province [47].
Also under construction is the Bushehr Petrochemical Complex, which will produce methanol and will occupy an area of 10 000 hectares in the Bushehr petrochemical complex. The launch will take place approximately at the end of 2017 [48].
Municipal waste utilization is a new direction for Iran. In Tehran province, the methane emission potential from landfills, which amounts to 438 million cubic meters per year, can generate about 2 400 MW of electricity. Soon the provincial municipality plans to launch a municipal waste utilization pilot project [49].
There are several areas of development in the field of fossil resources. One of the main undertakings is the extraction of shale oil. The National Iranian Oil Company stated that shale oil deposits were discovered in the province of Lorestan, and the potential was estimated at 2 billion barrels.
Diversification of export destinations is also one of the main priorities of the country's energy agenda. To this end, negotiations continue between Iran and Pakistan on the construction of a gas pipeline from Gwadar to Nawabshah [51]. In addition, the National Oil Company of the South signed a contract for the supply of associated gas to the private sector to the amount of 42 million cubic feet per day, which could reduce the flaring of gas [52].

The set of indices reflecting the position of Iran among other countries in the field of education and innovation can be seen in Figure 8.
According to the Global Innovation Index 2024, Iran is ranked 64^th out of 133 countries (see diagram for links). According to the second and third index, the country can be grouped in the number of countries with a sufficiently high level of patent activity.
According to the number of patents granted to Iranian residents, both inside the country and abroad, the country ranks 23^rd in the world, however in terms of patents in force, the country is 34^th out of 109 countries considered. Iran is very well positioned when considering the number of publications of specialists in scientific and technological journals — 15^th place out of 197 countries considered. It is also regarded highly by the Scimago Journal and Country Rank (21^st place).
In terms of government expenditure on education as a percentage of the country's GDP, the country demonstrates a low result – 127^th out of 177 countries selected for consideration.

Nevertheless, 9 Iranian universities are included in the QS University Rating 2025. It is also worth noting that the country's GDP is high enough, therefore, in absolute terms, government expenditure on education are nevertheless significant.
In terms of research and development expenditure as a percentage of GDP, the country is 67^th – slightly below the global average.
Iranian universities, such as the University of Tehran, Sharif University of Technology, Iran University of Science & Technology Tehran, K. N. Toosi University of Technology, Tarbiat Modares University, Shiraz University of Technology, and Isfahan University оf Technology Leoben train specialists in various fields of energy, including Petroleum Engineering, Materials Science and Engineering, Energy Systems Engineering, and Mechanical Engineering, etc.
In the fields of synthetic fuel production and extraction and processing of unconventional oil, the leader in patenting among Iranian companies are the Research Institute of Petroleum Industry (RIPI) and Sensiran. Research and development in this field is carried out by Shiraz University, Islamic Azad University, the University of Sistan and Baluchestan, the University of Teheran etc.

Graves of the Persian kings Darius and Xerxes near Persepolis, Iran. Envato Elements. KF9BWM74CE

In the field of extraction and processing of unconventional oil, one can note the research activities of such universities as the Petroleum University of Technology (PUT), Sharif University of Technology, Islamic Azad University, University of Teheran.
The leaders among the Iranian companies in fields such as the study of gas hydrates, are the National Iranian Oil Company (NIOC), Amirkabir University of Technology, Researh Institute of Petroleum Industry (RIPI); and in the field of research of hydrocarbon production from reservoirs with low permeability – Islamic Azad University, Amirkabir University of Technology, and the Petroleum University of Technology (PUT).
Leading research organizations in this field of associated gas are Islamic Azad University, Petroleum University of Technology (PUT), Sharif University of Technology. University of Teheran, Islamic Azad University, Isfahan University of Technology, have the highest number of publications in the field of bioenergy.
A large number of Iranian companies conduct research in the field of energy production from renewable sources. In the field of solar energy University of Teheran, Islamic Azad University, Ferdowsi University of Mashhad, Tarbiat Modares University, Sharif University of Technology should be mentioned. In the field of wind energy – University of Teheran, Islamic Azad University, Sharif University of Technology, Amirkabir University of Technology.

The environmental index diagram presented in Figure 9 reflects to some extent the ecological situation in the country.
First of all, the country demonstrates a relatively high level of CO₂ emissions in general, and per capita. At the same time, the situation is aggravated by the fact that Iran is 62^nd out of 64 countries responsible for more than 90% of global CO₂ emissions related to energy in the Climate Change Performance Index (CCPI) 2024.
The situation is brightened, however, by a relatively high valuation of Iran in the Environmental Performance Index rankings (EPI) 2024, which focuses primarily on assessing the environmental performance of national governments. In this rating Iran is above of Algeria, and Morocco being 113^th out of 180 member countries.

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[3] Iran/ The world factbook / Library / Central Intelligence Agency / https://www.cia.gov/
[4] GDP, PPP ((current international $) / World Bank, International Comparison Program database. License: CC BY-4.0 / Data / The World Bank / http://www.worldbank.org/
[5] GDP per capita, PPP (current international $) / World Bank, International Comparison Program database. License: CC BY-4.0 / Data / The World Bank / http://www.worldbank.org/
[6] Iran / U.S. Energy Information Administration /http://www.eia.gov/
[7] Statistical Review of World Energy 2024 (PDF) / https://www.energyinst.org
[8] Petroleum Ministry Outlook for Defeating Oil Challenges / SHANA/ شبکهاطلاعرسانینفت / http://www.shana.ir/
[9] Coal / Survey of Energy Resources (PDF) / World Energy Council / https://www.worldenergy.org
[10] Solar resource data obtained from the Global Solar Atlas, owned by the World Bank Group and provided by Solargis / Global Solar Atlas / http://globalsolaratlas.info/
[11] Wind Map / Global Wind Atlas 2.0, a free, web-based application developed, owned and operated by the Technical University of Denmark (DTU) in partnership with the World Bank Group, utilizing data provided by Vortex, with funding provided by the Energy Sector Management Assistance Program (ESMAP). For additional information: https://globalwindatlas.info
[12] Survey of Energy Resources 2013 (PDF) / World Energy Council / www.worldenergy.org/
[13] Agricultural land (% of land area) / Food and Agriculture Organization, electronic files and web site. License: CC BY-4.0 / Data / The World Bank / http://www.worldbank.org
[14] Forest area (% of land area) /Food and Agriculture Organization, electronic files and web site. License: CC BY-4.0 / Data / The World Bank / http://www.worldbank.org/
[15] Annual U.S. & Global Geothermal Power Production Report (PDF) / Geothermal Energy Association / http://geo-energy.org/
[16] World Bank What a Waste (PDF) / Data / The World Bank / http://www.worldbank.org
[17] Analysis (October 10, 2024) / Iran / Geography / U.S. Energy Information Administration /http://www.eia.gov/beta/international/
[18] South Pars gas field / SubSeaIQ / http://www.subseaiq.com/
[19] Ahvaz Field / Wikipedia / https://en.wikipedia.org/wiki/Ahvaz_Field
[20] OPEC Annual Statistical Bulletin 2023 (PDF) / Organization of the Petroleum Exporting Countries (OPEC) / http://www.opec.org/
[21] Four New Oil Storage Facilities to Come on Stream in Iran / TankTerminals / https://www.tankterminals.com/
[22] Iran – Gas Processing & Export Projects / The Free Library / http://www.thefreelibrary.com/
[23] Project / Projects / Overview / Iran Liquified Natural Gas Co. / http://www.iranlng.ir/
[24] Iran to inaugurate 1st GTL Plant by 2018 /  Fars News Agency / http://en.farsnews.com/
[25] International DME Projects (PDF) / Global Dimethyl Ether Emerging Markets.  / Google / http://www.google.com
[26] The Saghand Mine & Gchine Mine and Mill / Uranium Mining / ISIS Nuclear Iran / http://www.isisnucleariran.org/
[27] Eshkli Coal / Iran Mining / http://www.iranmining.com/
[28] Damavand Gas Power Plant / Industry About / http://www.industryabout.com/
[29] Shahid Montazeri Oil-fried plant / Industry About / http://www.industryabout.com/
[30] Shahid Salimi Oil Power Plant / Industry About / http://www.industryabout.com/
[31] Shahid Salimi Gas Power Plant / Industry About / http://www.industryabout.com/
[32] Electric Power Industry in Iran  / Tavanir Org. / http://amar.tavanir.org.ir/en/
[33] Karun-3 Dam / Wikipedia / https://en.wikipedia.org/wiki/Karun-3_Dam
[34] D-Large Hydro Power Plants / Electric Power Industry in Iran  / Electric Power Industry in Iran / Tavanir Org. / http://amar.tavanir.org.ir/en/
[35] Iran's largest wind farm commissioned / Wind Power Monthly / https://www.windpowermonthly.com
[36] Wind Farms erected throughout the country / Deputy for Executive and Technical / Ministry of Energy: Renewable Energy and Energy Efficiency Organisation (SATBA) / http://www.satba.gov.ir/en/
[37] Largest solar power plant in Iran opens /  Euronews / http://www.euronews.com/
[38] Yazd ISCC / CSP World Map / CSP World / http://cspworld.org/
[39] Meshkinshahr Geothermal Power Plant / Geothermal Energy / Industry About / http://www.industryabout.com/
[40] About Us / Iran Biodiesel Kish Co. / http://www.biodiesel.ir/
[41] Power plants constructed by private sector / Deputy for Executive and Technical / Ministry of Energy: Renewable Energy and Energy Efficiency Organisation (SATBA) / http://www.satba.gov.ir/en/
[42] Iran’s Renewable Energy Prospects and Challenges / October 23, 2024 / STIMSON / https://www.stimson.org/
[43] افزایش ١٠٠ مگاواتی ظرفیت نیروگاه های تجدیدپذیر کشور/An increase of 100 MW of renewable energy capacity of the country SHANA شبکه اطلاع رسانی نفت / Shana / http://www.shana.ir/
[44] سرمایه گذاری ۱۷۰ میلیون یورویی آلمان برای تولید پنل خورشیدی در ایران / Germany's investment of 170 million euros for solar panels in Iran / Shana / http://www.shana.ir/ 
[45] نیروگاه خورشیدی نفت و گاز کارون به بهره‎برداری رسید Karoun Oil and Gas Solar Power Plant was launched SHANA/ شبکه اطلاع رسانی نفت / /Shana / http://www.shana.ir/ 
[46] ٢٠ مگاوات نیروگاه خورشیدی در استان کردستان احداث می‌شود/ 20 MW solar power plant to be built in the province SHANA شبکه اطلاع رسانی نفت / Shana / http://www.shana.ir/
[47] 450-MW Rudbar Lorestan hydroelectric plant opens in Iran / Hydroworld.com / http://www.hydroworld.com
[48] واحد متانول پتروشیمی بوشهر تابستان ٩٦ راه اندازی می‎شود/Methanol petrochemical plant in Bushehr to be launched in summer 2017 شبکه اطلاع رسانی نفت / Shana / http://www.shana.ir/ 
[49] قابلیت تولید ٢٤٠٠ مگاوات انرژی در سال از گاز متان در استان تهران//The ability to produce 2400 MW of energy per year of methane in Tehran / Shana / http://www.shana.ir/ 
[50] Iran Finds 2 Billion Barrels Shale Oil Reserves in Western Province / Gulf Oil and Gas / http://www.gulfoilandgas.com/ 
[51] ایران و پاکستان برای پیشبرد طرح خط لوله گاز در تماس هستند / Iran and Pakistan are in contact with the gas pipeline project / Shana / http://www.shana.ir/ 
[52] قراردادفروش۴۲میلیونفوت‌مکعبگازهایهمراهنفتامضاشد/ The contract for the sale of 42 million cubic feet of gas was signed / Shana / http://www.shana.ir/  

The sources of charts and curves are specified under the images.

For more information about the energy industry in Iran see here