The main strategies and policies in the transport sector are as follows:

•    Determining fuel mix for transport sector
•    Identifying influential factors in fuel consumption in urban and road transport
•    Developing public transport
•    Using smart transport systems
•    Projects for lower travel demand
•    Membership of working group providing facilities for purchase of cargo wagon
•    Reducing energy intensity in road, air and sea transport
•    Studying alternative transport systems and new methods
•    Compiling guidance on energy and transport
•    Supporting fuel reduction projects
•    Managing transport systems and expanding IT
•    Allocating rational share to transport modes

Light Vehicles Technology

The number of cars is increasing in the world on a daily basis. That requires more transport and more fuel. But in developing markets, it would specifically mean more exhaust pollution. The increased levels of carbon dioxide have turned into a global challenge.

The main strategies and policies in this sector are as follows:

•    Reducing fuel consumption by cars
•    Upgrading quality and functionality of transport fleet
•    Promoting light diesel and hybrid cars
•    Identifying influential factors in light vehicles fuel consumption
•    Reducing energy intensity in light vehicles by upgrading the efficiency of engines
•    Studying effective projects and inventions for reducing car fuel consumption

Heavy Car Technology

Transportation is one of the highest consuming sectors of oil and gas, originating from heavy vehicles fleet in the country. The main activities in this field are as follows:

•    Reducing fuel consumption in heavy vehicles
•    Identifying the fabric of heavy vehicles
•    Planning to phase out clapped-out heavy vehicles
•    Upgrading quality and functionality of heavy transportation fleet
•    Using equipment for reducing fuel consumption in heavy vehicles
•    Studying automotive forces in heavy vehicles with a view to reducing fuel consumption
•    Feasibility study of using alternative fuels in heavy vehicles

Fuel Upgrade and Development

Some of associated strategies and policies in this sector are as follows:

•    Studying alternative fuels like LNG, methanol, bioethanol, biodiesel
•    Studying quality and determining status of fuel supply in the transport sector, including gasoline, gasoil and CNG
•    Examining and assessing technologies and methods of common fuel saving in the transport sector, including use of additives to fuel or engine oil, fuel saving equipment, applying methods of saving in fuel distribution and supply and choosing methods or technologies compatible with fuel and cars in Iran
•    Contribution to fuel mix preparation in the transport sector
•    Membership of Fuel Consumption Assessment Technical Committee for Imported Vehicles and participation in Car Imports Technical Committee of Ministry of Industry, Mine and Trade
•    Contribution to adoption and revision of national standards for fuel, car engine oil and their supplements

Fuel Consumption Standards

Low energy prices in Iran have deflected attention of energy efficiency of cars manufactured in Iran. Although for the purpose of upgrading the efficiency of manufactured cars’ fuel, associated standards have been drawn up and are enforceable, it is necessary to regularly reconsider past standards, keep a tab on new standards and update them.

Numerous laws and bylaws have been adopted emphasizing the necessity of fuel standardization, the most important of which are as follows:

•    Article 121 of 3rd Five-Year Economic Development Plan
•    Article 23 of 4th Five-Year Economic Development Plan (providing for endorsing Article 121 of 3rd Five0Year Economic Development Plan)
•    Law on Consumption Pattern Reforms (Articles 6, 9, 11, 12, 13 and 14)  
•    Law on Development of Public Transport and Fuel Consumption Management
•    Executive Bylaw of Article 14 of Law on Consumption Pattern Reforms

The Executive Bylaw of Article 121 of the 3rd Five-Year Economic Development Plan calls for the establishment of a committee comprising representatives of Ministry of Petroleum, Ministry of Energy, Ministry of Industry, Trade and Mine, Department of the Environment and Institute of Standards and Industrial Research of Iran, to determine standards on energy-intensiveness of equipment, processes and energy consumer systems. This committee, referred to as Energy Consumption Standard Committee, is led by Ministry of Petroleum in fossil fuel cases.

Windows are an important element in buildings. They let light and heat in, not to mention their visual beauty. However, if windows are not manufactured and installed correctly or if energy concerns are not taken into consideration in designing buildings and consequently windows are misplaced, they would become the main cause of energy loss in both cold and hot seasons.

In terms of consumption, windows with higher thermal resistance are more energy-efficient. The thermal resistance of windows depends on the following factors:

•    Windowpane
•    Number of glass layers
•    Thickness of air layer between two glasses
•    Thermal resistance of window frame
•    Joints and airtightness during installation

Each parameter depends on the quality of materials used in window manufacturing.


Insulation is instrumental in keeping buildings warm enough in winter and cool enough in summer. With insulation, a house may become 5 degrees warmer in winter and 10 degrees cooler in summer. Therefore, in addition to energy saving, environmental pollution will decline and energy resources will be protected for future generations.     

Airtightness Joints

When external air penetrates buildings, residents feel discomforted. This problem may exist in all buildings, whether newly-constructed or old, and could increase fuel consumption by up to 25%.

Design of Surroundings

The design of buildings is a key element in energy efficiency, thereby cutting costs. Furthermore, it would provide favorable climate in winter and summer.

Land: A piece of land with good exposure to winter sunshine is good.

Construction Materials: Walls and floor (brick walls and mosaic floor) could help stabilize temperature. This state is much better for buildings whose windows overlook southward.

Interior Design and Rooms Arrangement: Most frequented spots like dining and living rooms should be located in the southern part of the building. If there is not enough space for them, the living room is prioritized.

Size and Location of Windows: The size and location of windows have to be determined based on allotment and category of construction materials. Adjustable windows can help regulate temperature in the summer. Awning is also recommended.

Window Protection: Double-glazed windows keep houses warmer and external waning can keep houses cool in summer. Both help save energy.

Heating System: Segmentation of houses and using energy-efficient heaters is the best and easiest way of fuel efficiency.

Water Heater: The water heating system should be installed as much close to kitchen and bathroom as possible.

Lighting: Use natural light as much as possible. Bright painting of walls and ceiling is helpful. Use fluorescent lamps in living rooms. Use separate keys for lamps.

Surroundings: Planting tall trees in the surroundings of buildings would let you use sunlight in winter and shadow in summer.

Energy Audit

Energy audit in buildings incorporates energy consumption mechanisms, energy costs estimation and finally energy saving plan proposal. An energy audit is an inspection survey and an analysis of energy flows for energy conservation in a building.

Non-metal minerals consume 39% of total fuel used in the industrial sector. In this group, brick, cement, glass, and plaster & lime consume respectively 21%, 13%, 2% and 3% of total fuel used in the industrial sector.

Basic Metals

Basic metals include the four major groups of iron and steel, foundry, lead and zinc, copper and aluminum. According to the 2007 Energy Balance Sheet, basic metals’ share of industries’ fuel consumption was 15.4%.

Processing Industries

-    Oil Refineries

Oil refinery is an industrial plant converting crude oil to jet fuel, diesel fuel, kerosene, gasoline, asphalt, and liquefied petroleum gas among other refined petroleum products.

Depending on the feedstock for which they are designed, oil refineries have different structures and energy characteristics.
Generally, crude oil refinery comprises three divisions:

•    Physical separation (distillation, extraction, de-asphalting)
•    Chemical separation (thermal, catalytic)
•    Refining and final operations (chemical, with hydrogen)

-    Gas Refineries

A gas refinery is an industrial plant fed with unprocessed gas supplied from gas resources to separate heavy compounds, regulate dew point and improve the thermal value of gas to finally deliver products to consumers. Gas refineries are the main suppliers of gas in the country. The main processes in gas refineries are as follows:
•    Receiving gas and separating gas condensate
•    Desalting gas and recovering sulfur
•    dehydrating refined gas
•    Regulating dew point and removing mercaptan
•    Stabilizing gas condensate
•    Boosting pressure and transferring gas
•    Regenerating solvents (MEG)

-    Oil Pipelines

The extended network of pipelines is used for carrying crude oil from production points to refineries, delivering refined products as well as imported products to consumer points across Iran. The daily increasing use of oil and gas products in industries, refineries, power plants, cars and houses, developments in the culture of using fuel for public purposes and Iran’s access to huge oil and gas reserves provide cause for the extension of pipelines carrying petroleum products nationwide and even to neighboring countries.

-    Gas Transmission

The energy consumption and natural gas pipeline standard was set in 2010 under National Standard Code 13376 by Iran Fuel Conservation Organization.

This standard is designed to determine criteria for energy consumption and energy label at natural gas transmission lines and facilities. The standard is used for the following purposes:

•    Management of energy consumption at natural gas compressor stations
•    Management of energy consumption at natural gas pipelines
•    Management of energy consumption at natural gas decompressor stations

-    Petrochemical Plants

The petrochemical sector is a key industry affiliated with the petroleum industry. It covers value chains from raw materials and unique oil and gas resources to final products.

A major advantage with the petrochemical industry in Iran is the abundance of hydrocarbon and raw materials.

Petrochemical plants were initially fed exclusively by the naphtha supplied by refineries. However, with the development of gas resources in the country and development of petrochemical processing technologies, gas is being now used as feedstock in such facilities. Therefore, the policy of feeding new petrochemical plants with gas topped the agenda.

-    Agriculture

In parallel with the promulgation of Law on Removing Obstacles to Competitive Production and Upgrading Fiscal Regime and for the purpose of further contribution of the private sector to investment and in application of Article 12 of said Law, electrification of water wells and pumps used for agriculture was envisaged.

Agriculture Water Wells and Pumps Electrification

In light of government’s huge annual subsidy allocation to liquid fuel delivered to farmers who have to endure hardships in operating diesel-powered wells, the Economic Council adopted a decision in 2014 on the electrification of agriculture water wells. Pursuant to this decision and subsequent amendments, the Ministry of Petroleum, on behalf of government, is authorized to pay up to $1,650 million a year up to March 2027 to potential investors in associated projects. There are currently about 229,000 diesel-powered agriculture wells using liquid fuel to keep water pumps running. However, due to prioritization announced by Water Resources Management Company, the electrification capacity of this project is limited to 130,000 wells. Therefore, potential investors willing to invest in electrification of agriculture wells may use renewable energies (solar and wind energy) or connect to national power gird or use gas-powered generators. By saving energy, they would receive fuel subsidy for up to eight years.

Saved Energy Products:
Gasoil and kerosene

Full implementation of this project (electrification of 130,000 water wells and pumps) would ease farmers’ hardships in supplying liquid fuel and having diesel generators repaired in addition to saving about 667 million liters a year of liquid fuel including gasoil and kerosene.

-    Other Industries

Other industries include tire, wood, paper, chemicals, textile, apparel, leather, chicken breeding, and energy-intensive equipment. They account for about 10% of fuel consumption in the industrial sector.

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