Electrification of agriculture wells will help save 750 million liters of diesel per year, and the saved fuel can be exported via the Iran Energy Exchange.
As per an agreement concluded between the government-affiliated Power Generation, Distribution and Transmission Company (Tavanir) and Iran Fuel Conservation Company, at least 12,000 diesel-powered farming wells will be electrified by Tavanir every year.
There are 75,000 agro wells which run on this fuel and Tavanir started to link them to the national grid in late 2019. The electrification project will be undertaken in six years at an estimated cost of $1.2 billion.
“When the wells are electrified, they will also be equipped with smart electricity meters to help the Energy Ministry efficiently monitor water use” Hossein Mahmoudi, director of the plan was quoted by IRNA as saying.
A smart meter is a modern electricity meter that digitally sends meter readings to utilities, keeps consumers abreast of the consumption levels and ensures accurate billing.
The collaboration is in the interest of environmental protection, he added.
Not only does the initiative help burn less environmentally-unfriendly fuel and reduce air pollution, it also will reduce maintenance costs.
Diesel consumption has reached 80 million liters per day, up 11% compared to 2018. According to the National Iranian Oil Refining and Distribution Company, diesel is sold at 3,000 rials (2 cents) in Iran.
Direct Link
Referring to the direct link between development and consumption as two wings of economic growth, especially under the US sanctions regime, deputy minister of energy Homayoun Haeri said, "Now that the former (development) has been inhibited due to banking restrictions, the latter (consumption) must be curbed to the best of our ability."
The official said energy consumption in the country is a cause of concern and is annually equal to energy produced by burning 1.4 billion barrels of crude oil.
"This trend simply cannot continue for long and will definitely hinder energy development goals," the official said, adding that by conforming to reasonable consumption patterns, the “equivalent of 500 million barrels of oil can be saved.” He did not go into details.
IFCC says more than 35% of the energy is consumed in buildings.
Industries and agriculture account for 24% and 17%, respectively, and the balance (24%) or the equivalent of 320 million barrels is used for transportation.
Regarding energy consumed by vehicles, gasoline, diesel and gas comprise 48%, 34% and 15% respectively.
International Energy Agency data show Iran paid $45 billion in energy subsidies in 2017 -- up 55% compared to the year before.
Of the total, $16.5 billion was allocated to oil and oil byproducts, namely gasoline and diesel, $12.3 billion to the electricity sector and the remaining to natural gas
