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A reluctance to raise tariffs has pushed Tehran to look to increased power plant productivity in a bid to meet runaway demand. Curbing the resultant rapid rise in domestic gas consumption – 70% of Iran’s plants are gas fired – will be essential if Iran is to fulfill its ambitions to become a major regional gas exporter (see p8).
Iran’s Ministry of Energy faces the same major financial constraint as all other power sector authorities in the Middle East – ruinously low electricity tariffs. Like other regional energy ministries, Iran’s also faces strong demand growth, around 6%/year, even in recent years of constrained economic activity.
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