Electricity loss in Iran’s distribution and transmission network stands at 9.2%, which is acceptable considering the vast coverage of the power grid, the spokesman of the power industry said.
However, “it is ideal to reduce this rate to 8.5%, and serious measures has been taken in this regard,” Mostafa Rajabi-Mashhadi was also quoted as saying by Bargh News website.
Electricity wastage has been on a downtrend since 2014 when it was 15%. Substituting aging equipment, electric cables, utility posts and electric meters, as well as fighting illegal use (theft) were among measures adopted by Tavanir (the Power Generation, Distribution and Transmission Company) to minimize the loss.
According to the official, reducing wastage is on the agenda of the Energy Ministry and Tavanir.
“Decreasing the power loss will help save the consumption of natural gas in the power stations and prevent the emission of carbon dioxide,” he added.
According to Tavanir, $500 million are required to cut electricity waste below 9.2%.
Power waste in China, the US, France, Italy, Britain, South Africa and Canada is as low as 5.5%, 5.9%, 6.4%, 6.7%, 8.3%, 8.4% and 8.9%, respectively. Global average power loss is around 8.3%.
Ageing equipment and theft are the two chief causes of power loss. Transmission and distribution losses include loss in transmission between sources of supply and points of distribution and distribution to consumers, including pilferage.
Transmission lines help the movement of electricity from one or more power stations to substations and distribution lines carry electricity from a substation to end consumers.
Electricity is usually sold from large power plants via extensive networks and rugged terrain. Transmission over long distances creates power loss hurting the balance sheets of utilities in Iran long saddled with the costly subsidies to consumers ordered by the state.
Losses from the transmission and distribution of electricity through inefficient networks mean that additional electricity must be generated to service the same level of demand.
Options to reduce these losses include replacing transformers and power lines, and optimizing the reactive power profile. Investments in smart grids would facilitate further CO2 emission reductions by reducing load peaks, load shifting, facilitating the integration of renewables generation, supporting the adoption of electric vehicles and improving energy efficiency.
Steel Sector
A very clear example of power loss in Iran is the steel sector.
The production of 1 ton of steel in Iran requires 800 kilowatt hours of electricity, which is 62% higher than the global average.
Based on data from academic studies, the average power consumption to manufacture 1 ton of steel in China, Turkey, India and Russia is approximately 494 kWh, that is 306 kWh less than the power used in Iran’s steel mills.
In other words, close to 300 kWh of electricity go to waste for producing each ton of steel as power optimization techniques in the key industry is ignored in Iran and the production methods and technologies are outdated.
Iran’s annual steel output is around 20 million tons, which means approximately 6 billion kWh of power are annually wasted in the steel sector. This can be avoided if energy efficiency plans are implemented.
Electricity deficit in Iran was about 7 billion kWh in 2021. In other words, total power waste in steel industry equals the country’s annual electricity deficit.
The steel industry is critical to Iran’s economy, as it is the material of choice for construction, transportation, manufacturing and consumer goods production. It is the backbone of bridges, skyscrapers, railroads, automobiles and appliances.
Globally, energy use in the steel industry has been declining. A 10-year historical trend (1991-2002) indicates that the steel industry has witnessed a 38% decline in energy consumption, but this is not the case in Iran.
