IranMarket #1 : Iran’s Power Industry Analysis Investment Risks & Opportunities in Post-Sanctions Era

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Iran’s Power Industry Analysis Investment Risks & Opportunities in Post-Sanctions Era

 

Summery :

In the last two decades, Iran’s power industry has undergone a major transformation to respond to its growing domestic needs, intensified industrialization, and electricity export ambitions. Despite the adverse impact of sanctions, lack of technology, chronic mismanagement, and financial challenges, the electricity sector has continued to meet the country’s fast-paced growing power demand, albeit in an inefficient and uneconomic manner facing occasional blackouts during peak demands. In the last eight years in particular, under severe constraints of capital and investment, the industry has gradually weakened; the growing number of incomplete projects and the decline in the number of new projects lagging behind the rising demand is clear evidence of this exhaustion. Nevertheless, given that removal of sanctions has now become imminent, and with a pro-reform, pro-foreign investment government in office, the electricity industry is poised to expand rapidly in the years ahead, not to mention the significant role that the country’s massive gas reserves can play in accelerating such an expansion.

 

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