Strategic Analysis of Iran’s Energy System

  • Alireza Heidari University of Tehran
  • Alireza Aslani University of Tehran
  • Ahmad Hajinezhad University of Tehran
  • Seyed Hassan Tayyar Science and Technology University of Tehran
Keywords: Energy System


Due to the importance of energy to societies, analysis of local, regional and national energy systems at different levels is salient for researchers and policy makers. This article considers Iran’s extraction, processing, conversion, transmission, distribution, and consumption of energy. Iran is one of the world’s fastest growing energy consumers and its economy is highly dependent on energy exports. The patterns of Iran’s present energy system impact its economy and development. Our research assesses the energy system in Iran by identifying and analyzing its strengths, weaknesses, opportunities and threats (SWOT). The article considers these from internal and external perspectives and concludes that energy plays an important role in policy and development. This assessment can help policy makers and researchers identify challenges and create suitable and robust strategies.


Download data is not yet available.

Author Biographies

Alireza Heidari, University of Tehran

Alireza Heidari is a doctoral student of energy systems engineering at the University of Tehran. He has received his MS and BS degrees in energy systems engineering and mechanical engineering. His research interests include energy modelling, mathematical and dynamic programming in energy systems. Email:

Alireza Aslani, University of Tehran

Alireza Aslani is an assistant professor of the renewable energy and environment department at the University of Tehran. He also studied at the University of Vaasa, Finland. His research interests include energy modelling, policy analysis of energy technologies. Email:

Ahmad Hajinezhad, University of Tehran

Ahmad Hajinezhad is an assistant professor in the renewable energy and environment department at the University of Tehran. He has several research experiences related to energy studies. His research interests include bio-fuels and renewable energy technologies. Email:

Seyed Hassan Tayyar, Science and Technology University of Tehran

Seyed Hassan Tayyar has a Master of Science degree in Industrial Engineering. He is a researcher at the Science and Technology Park of the University of Tehran. He is also a lecturer of Payam Noor University. His research interest includes strategic and technology management. Email:


Rostamihozori, M. (2002, February 14). Development of energy and emission

control strategies for Iran. Dissertation der Universität Fridericiana zu


Amirnekooei, K., Ardehali, M. and Sadri, A. (2012, October). Integrated

resource planning for Iran: Development of reference energy system, forecast,

and long-term energy-environment plan. Energy 46(1), pages 374-385.

Kazemi, A., Reza, M., Mehregan and Shakouri, H. (2011, October 23). Energy supply model for Iran with an emphasis on greenhouse gas reduction. The

st International Conference on Computers & Industrial Engineering.

University of Southern California, pages 491-492.

David, F. (2011). Strategic management: concepts and cases. 13th edition:

Prentice Hall, page 178.

International Energy Agency (2014). Total petroleum and other liquids


International Monetary Fund (2010, January 11). Islamic Republic Of Iran staff

report for the 2009 Article IV Consultation.

Iranian National Bank (2010/11). Balance of payments. Economic Trends 16, third

quarter, page 16.

International Energy Agency (2015). Energy statistics for country, Iran. http://

Eslamifar, G., Shirazi, A. and Mashayekhi, A. (2012, July 22-26). A system

dynamics model to achieve sustainable production of oil in Iran. 30th

International Conference of the System Dynamics Society, St. Gallen,


International Institute of Energy Studies (2009). Iran hydrocarbon balance, 1387.

International Energy Agency (2009). Co-generation and district energy:

Sustainable energy technologies for today and tomorrow: OECD/IEA

Publications, Paris.

Veerapen, J. (2011). Co-generation and renewables solutions for a low-carbon

energy future: OECD/IEA Publications, Paris.

International Energy Agency (2010). Statistics, Sweden, indicators for 2010.


International Atomic Energy Agency (2005). Energy indicators for sustainable

development: guidelines and methodologies. Vienna.

Yanagisawa, A. (2011, January). Trade-off in energy efficiencies and efficient

frontier – Relationship between GDP intensity and energy consumption per

capita and what it means. IEEJ Energy Journal, Japan. https://eneken.ieej.

International Energy Agency (2012). Indicators for Japan.



International Energy Agency (2012). Indicators for Turkey.



International Energy Agency (2012). Indicators for Iran.



United States Congress (2006). Energy and the Iranian economy, page 50.

International Energy Statistics (2013). GTZ – International fuel prices, Eighth

edition, GIZ publication.

Energy Information Administration. International energy statistics. http://


Iranian Parliament (2010, January 5). The Iranian targeted subsidy plan.

International Atomic Energy Agency (2014). Country nuclear power

profiles 2014. Islamic Republic of Iran, updated 2010. http://www- pub.


Bijan, Z. (2012). Strategies for overcoming the oil-dependent economy. Lecture,

University of Tehran.

Chen, W., Kim, H. and Yamaguchi, H. (2014, November). Renewable energy

in eastern Asia: Renewable energy policy review and comparative SWOT

analysis for promoting renewable energy in Japan, South Korea and Taiwan.

Energy Policy 74, pages 319-329.

Terrados, J., Almonacid, G. and Hontoria, L. (2007, August). Regional energy

planning through SWOT analysis and strategic planning tools: Impact on

renewables development. Renewable and Sustainable Energy Reviews 11(6), pages


Markovska, N., Taseska, V. and Pop-Jordanov, J. (2009, June). SWOT analyses of

the national energy sector for sustainable energy development. Energy 34(6),

pages 752-756.

Fertel, C., Bahn, O., Vaillancourt, K. and Waaub, J. (2013. December). Canadian

energy and climate policies: A SWOT analysis in search of federal/provincial

coherence. Energy Policy 63, pages 1139-1150.

Haji-Rahimi, M. and Ghaderzadeh, H. (2008, March). The challenges of

sustainable management in renewable natural resources in Iran: A SWOT

analysis. American-Eurasian Journal of Agricultural and Environmental Sciences


Wuppertal Institute for Climate, Environment and Energy (2010, October).

German-Iranian co-operation VI: feed-in laws and other support schemes in

international perspective.

Faezeh, M. (2009). Strengths, weaknesses, opportunities and threats for

renewable energy in Iran. Thesis, Azad University.

Ali, K. (2013, March). Strategic priorities of Iranian oil and gas policies using

SWOT analysis. Ninth international energy conference. Tehran, Iran.

Ansari, A. and Hadjarian, M. Strengths and weaknesses of Iran oil and gas

industry. Strategic management class lecture, Allame Tabatabaei University., in Persian.

Tehran University (2012, November). An analysis of the status of the economy’s

dependence on oil revenues and practical solutions to overcome it. Congress

of Economics, Faculty of Economics.

Dehghani, M. and Feylizadeh, M. (2014, September). An overview of solar

energy potential in Iran. International Journal of Current Life Sciences 4 (9), pages