Sources of Iran Funding with a Key Focus on Energy
Iran is among the leading producers and biggest exporters of oil in the world. Iran has abundant fuel that generates energy. As from 1913, Iran has been the primary country for oil exports. Owed to the availability of cheap energy in Iran, there is not just too much wastage, but also too many smuggling cartels of the different fuels. The demand for this product has gone high owed to the rapid increase in car production in recent years.
Iran comes third regarding producing natural gas globally, which is essential for the production of heat and generation of domestic electricity. The production of gas in this country is bound to increase in the next years because of the continuing discoveries of new regions. The government of Iran has subsidized the prices of natural gas as well as the prices of gasoline in a bid to sustain the growing domestic consumption levels. When the domestic demand increases, chances are high that the exports will also go up.
The production and domestic consumption of electricity in Iran has grown steadily since 1984 and is highly dependent on the traditional sources of thermal energy, with a tiny percentage being produced in the hydroelectric plants. Therefore, it is paramount that Iran strives to meet the growing demand for energy in the globe. Iran has succeeded in acquiring the needed technical expertise to create hydroelectric and gas power plants. Iran is not only focused on amassing all the power within its state but has also crossed borders and taken up varied projects in the bordering countries.
There are varied and wide efforts to explore the sources of power in Iran. The electricity sector is highly subsidized with most of the power generation, transmission or distribution handled by the government-owned companies. To ascertain that all the growing requirements of the different consumers are met, Iran is beginning to embrace the private investors and companies. Although many individuals criticize the procedures used to generate electricity in Iran, it is true to say that the current state is much better in terms of conserving the environment than in the past years. Some of the elements that have led to the increased demand for electricity include the heightened industrialization as well as the demographic trends. To meet all the increased energy needs of clients, Iran has also embraced production of nuclear energy. This country is also making concerted efforts to make renewable energy viable commercially with the help of the Ministry of Energy. Hydropower is crucial in Iran since it provides the needed energy and also generates income for the state since the water turbines are constructed locally. Other common energy sources in Iran include geothermal energy, biofuel, solar and wind energy.
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