What is Causing Widespread Power Outages in Iran?
The energy crisis in Iran continues. For the past few months, several provinces in Iran have been experiencing shortages in electricity and natural gas. The government refers to this as "A Crisis of Imbalance," (or in Persian Natarazi) in production and consumption of power and natural gas.
To conserve energy, starting this month, schools and offices will shut down in several provinces on Thursdays as well as Fridays (official Iranian holiday). Energy Minister blames some of the energy shortage on underground Bitcoin and Blockchain miners in Iran, without any reference to government-authorized mining designed to bypass strict economic sanctions against the country.
Some analysts blame the crisis on the subsidies offered by the government that keep energy prices artificially low and encourage energy consumption and waste both in residential and industrial sectors. Others blame subsidized energy exports that bring in precious foreign currency (as Iran's currency valuation plummets) for the domestic shortage. Some reformists like President Pezeshkian and conservatives like analyst Mohammad Hossein Azimi blame "energy and oil-exporting mafia" for the shortage.
It appears that the shortage of energy seems to be linked to the shortage of foreign currency and strict economic sanctions imposed on the country.
Related to Energy:
