Ministry of Petroleum

Energy Efficiency

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  • Energy Efficiency

Fuel efficiency in general focuses on conducting studies, preparing the ground and making necessary arrangements for efficient use of fuel in all activities and affairs, either as producer or consumer. Determining standards and regulations, adopting executive bylaws for the fuel market, including equipment manufacturing standards, processes, systems as well as energy consumption equipment and tools, lie within the category of energy efficiency. However, the main activities of this sector include fuel saving in transport systems and vehicles, households and industries, helping growth of technology and product quality upgrade in terms of energy consumption in the industries manufacturing equipment for fuel consumption, promoting the culture of efficient energy use at different levels of society through printing books, magazines and articles, regulating plans through mass media, public education, financial and scientific support are among activities of universities, research institutes and non-state organs in upgrading energy saving technologies and providing scientific ground for improved energy consumption management.

In light of Iran’s long record in oil production and supply of petroleum products, development of infrastructure and increasing welfare facilities including expansion of gas distribution network, increasing the number of cars, factories and industries, it was necessary to manage the fuel consumption in a bid to avoid wastes. To that end, the Ministry of Petroleum established the Iran Fuel Conservation Organization (IFCO) in 2000 in order to manage demand and implement fuel efficiency policies in various sectors. The establishment of IFCO was aimed at helping develop the use of various modern energy conversion technologies, reducing long-term costs from energy demand, adopting standards, regulations and instructions related to energy efficiency, finding alternatives for energy products along with developing the use of local energy potentialities and renewable energies. IFCO is one of the most effective enterprises in Iran specializing in fuel efficiency in compliance with laws set forth by the Ministry of Petroleum. In parallel, the subsidiaries of Ministry of Petroleum have taken effective measures with regard to reforming the fuel consumption process in production units, respecting the consumption pattern and using alternative energies.

In light of increased fuel consumption in the country, important measures and plans have been proposed by the government and the Ministry of Petroleum. With the adoption of various laws in 2014 and then 12 energy efficiency projects worth about $30 billion, it became possible for buyback and build-operate-transfer (BOT) investment. Once fully operational, some of these projects would save billions of liters of fuel. Some of these projects are as follows: upgrading 600 engine chambers, electrifying 100,000 agriculture wells, replacing 140,000 clapped-out cabs, supplying 400,000 electric motorcycles, replacing 65,000 clapped-out trucks and trailers, developing subway in big cities, operating 17,000 diesel or CNG-fuelled buses and gas supply to Sistan and Baluchestan Province. The 6th Five-Year Economic Development Plan requires a 50% decline in the energy consumption intensity by the end of the plan. By implementing the projects explained here, fuel consumption will decline sharply. To that effect, various agreements have so far been signed between the Ministry of Petroleum and other organs.