Minister of Energy: Empty Fuel Reserves, Sanctions and Sabotage at Root of Crisis
In a recent session of parliament, Minister of Energy Abbas Aliabadi outlined the scale of Iran's energy crisis
Iran is experiencing one of its most severe energy crises in recent decades, marked by daily electricity blackouts, water shortages, and widespread disruptions to industry and daily life. In a recent session of parliament, Minister of Energy Abbas Aliabadi outlined the scale of the crisis, its underlying causes, and the challenges the government faces in addressing it. His remarks revealed the depth of Iran’s infrastructure problems as well as the political and economic conditions that have intensified them.
A central factor in the crisis has been the departure of foreign contractors, including Chinese companies, who left Iran due to international sanctions and domestic restrictions. Their exit has left many power plants without the technical expertise needed to maintain operations, forcing some facilities to go offline. Aliabadi also disclosed that sabotage against Iran’s energy infrastructure, particularly its gas pipelines, has worsened the situation. While he avoided details in the open parliamentary session, previous incidents such as the February 2024 explosions along Iran’s main north–south gas pipeline underscore the vulnerability of this infrastructure. With roughly 85 percent of Iran’s electricity generation dependent on gas-fueled plants, any disruption to gas supplies has immediate and devastating consequences for the power grid.
Compounding these challenges are long-standing structural weaknesses. More than 15,000 megawatts of Iran’s installed power capacity comes from plants that have exceeded their operational lifespan, making them inefficient and unreliable. At the same time, the imbalance between supply and demand has grown sharply. When the new administration of President Masoud Pezeshkian took office, it inherited a shortfall of nearly 20,000 megawatts, empty seasonal fuel reserves, and factories forced to halt production under the previous government of Ebrahim Raisi. In order to prevent complete collapse, authorities resorted to burning mazut, a heavy fuel oil that damages equipment and generates severe environmental pollution.
Aliabadi’s remarks also served as an implicit critique of the Raisi government, which frequently blamed its failures on the Rouhani administration. He emphasized that not only were fuel reserves exhausted when Pezeshkian’s team assumed office, but that broader mismanagement, economic imbalances, and lack of investment had deepened Iran’s energy crisis. The failure to revive the nuclear deal (JCPOA) and ease sanctions reduced government revenues and discouraged investment, leaving Iran unable to modernize plants or expand renewable energy at a meaningful scale. In addition, critics of Aliabadi point to his tenure as head of MAPNA, Iran’s largest energy conglomerate, where monopolistic practices allegedly blocked private sector participation and reinforced systemic inefficiencies.
The human and economic costs of the crisis are significant. Ordinary citizens endure several hours of blackouts daily, particularly during peak summer demand, leading to mounting frustration and protests. Businesses and industries face production losses, while hospitals and essential services struggle to operate without reliable electricity. The shortages have worsened the broader economic downturn, undermining growth and fueling public dissatisfaction with government performance.
The government has promised both short-term relief and long-term solutions. Aliabadi assured parliament that household blackouts will soon be resolved, citing renewed coordination with the Ministry of Oil to refill depleted fuel reserves. He also pledged to expand renewable energy capacity from 1,250 megawatts at the beginning of the Pezeshkian administration to 7,000 megawatts by the end of the year. While such measures could provide partial relief, they do not address the full scale of the shortfall.
The current crisis underscores Iran’s dangerous overreliance on aging, gas-dependent infrastructure, its lack of investment in modern power systems, and the severe consequences of geopolitical isolation. Aliabadi’s public acknowledgment of mismanagement in previous governments marks a rare moment of political candor, but analysts warn that without systemic reforms in domestic policy, foreign relations, and governance of the energy sector, Iran’s power shortages are likely to persist or worsen in the years ahead.