President Stresses the Need to Maintain Production and Utilize the Energy Exchange, Imported Electricity, and Industrial Load Shifting
At its second meeting on reviewing electricity supply for industries, the government placed the reduction of power restrictions across the steel value chain on its agenda; restrictions that had exceeded an average of 85 percent in the second half of August. At the meeting, the President emphasized the need to maintain production continuity and prevent the shutdown of industrial production lines, and ordered that the implementation of resolutions concerning electricity supply for industries be continuously monitored.
The meeting was attended by Masoud Pezeshkian, President of Iran, the Minister of Industry, Mine and Trade, the President’s Executive Deputy, officials from the Ministries of Industry, Mine and Trade and Energy, and representatives of the Iranian Steel Producers Association. The latest status of the implementation of the resolutions adopted at the previous meeting, as well as existing obstacles to supplying electricity to industries, was reviewed.
Based on the decisions made, utilizing the capacity of the Energy Exchange to supply part of the electricity required by large industries, making use of imported electricity, and shifting part of industrial electricity consumption to Fridays were placed on the agenda as solutions to reduce pressure on the power grid.
Daily Monitoring of Resolutions on Electricity Supply for Industries
Emphasizing that maintaining production continuity and preserving employment are national necessities, Pezeshkian ordered that the implementation of seven resolutions related to electricity supply for industries be monitored on a daily basis by the Presidential Executive Office and that obstacles to their implementation be removed.
At the meeting, the progress made in implementing previous resolutions, execution challenges, and the reasons why some decisions had not been fully realized were reviewed. The President also stressed the need to accurately identify obstacles and provide operational solutions to accelerate the implementation of the resolutions.
He described electricity supply for industries as requiring a national approach and stated that the shutdown of production lines could, in addition to harming economic enterprises, have consequences for employment and workers’ livelihoods. According to Pezeshkian, the government’s policy is based on ensuring the continuous supply of electricity to industries and preventing the suspension of activities at production units.
At the same time, the President identified consumption management, load control, improving energy efficiency, and reforming consumption patterns as requirements for the industrial sector in supporting plans aimed at managing the electricity supply-demand imbalance.
Three Pathways for Supplying Electricity to Large Industries
Based on the decisions made at the meeting, large industries are expected to purchase part of their required electricity from power offered by the Ministry of Energy through the Energy Exchange under favorable economic conditions, while the remaining portion of their needs will be supplied by the Ministry of Energy.
It was also decided that the proposal to shift part of industrial electricity consumption from peak-demand days to Fridays, with the aim of reducing pressure on the grid during peak consumption periods, would be reviewed by the Supreme Labor Council and a decision would be made accordingly.
Utilizing the capacity of imported electricity has also been placed on the agenda. Accordingly, the Ministry of Energy will be required to provide the necessary conditions and infrastructure for industries to participate in the use of imported electricity so that part of their electricity needs can be met through this channel.
Steel Industry Awaits Reduced Restrictions in the First Week of September
Vahid Yaghoubi, Executive Deputy of the Steel Association, referring to the second meeting with the President on reviewing electricity restrictions for industries, said that after the resolutions of the previous meeting failed to achieve the desired results, the Ministry of Industry, Mine and Trade continued to pursue the matter, and a new meeting was held to examine obstacles and executive solutions.
According to Yaghoubi, the latest status of electricity restrictions across the steel value chain, which averaged more than 85 percent in the second half of August, was explained at the meeting. With the President’s emphasis, it was decided that the capacities of other sectors, including the residential and commercial sectors, the petrochemical sector, and the Energy Exchange, should be utilized to reduce pressure on the grid and ease restrictions on industry.
The Executive Deputy of the Steel Association also announced that the President had tasked his Executive Deputy with continuously pursuing the issue of electricity supply for industries until a result is achieved.
Yaghoubi expressed hope that, with the implementation of the new decisions and the follow-up measures taken, electricity restrictions on steelmakers would be reduced to 50 percent in the first week of September.
