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Iran's parliament speaker blames mismanagement for energy crisis

Jan 5, 2025, 20:28 GMT+0Updated: 11:56 GMT+0
Blackout in Tehran
Blackout in Tehran

Iran’s parliament speaker has blamed mismanagement as the cause of the country's energy crisis during a special session of the Energy Committee on Sunday.

Addressing the country’s persistent power and fuel shortages, Mohammad Bagher Ghalibaf said, “The real problem lies in management. One person blames another, and the cycle continues. Until we solve the management imbalance, we cannot resolve the energy imbalance.”

The rare remarks which contradict the official government line blaming the crisis on resource shortages, came as Energy Minister Abbas Aliabadi warned of a looming electricity deficit and unprecedented challenges in the coming summer, following a season of widespread blackouts and gas shortages.

With a projected shortfall of 25,000 megawatts of electricity next year, Aliabadi admitted that immediate solutions look bleak.

Ghalibaf spoke about institutional flaws in Iran’s energy sector, attributing inefficiencies to outdated governance structures. “There is an institutional flaw in the energy sector, both in production and consumption, leading to policy mistakes. Our energy governance is flawed,” he said.

Energy Minister Aliabadi acknowledged the gravity of the situation, apologizing for gas shortages and outlining the government’s inability to resolve them in the short term. He cited last summer’s 20,000-megawatt electricity shortfall and warned of worsening conditions.

“Winter’s cold can be endured with warm clothing, but navigating the challenges of summer is not as simple,” he said.

However, Ghalibaf proposed the establishment of an operational center to coordinate between the Oil Ministry, the Ministry of Energy, and Parliament. “To address the energy imbalance, supply and demand must align. While production must be a focus, consumption must also be controlled,” he said.

Gas shortages have also reached critical levels, with domestic consumption exceeding production capacity, resulting in rationing and significant strain on households and industries. Efforts to curb usage, such as a 2-degree reduction in heating temperatures, have saved 45 million cubic meters of gas daily, but structural issues persist, in spite of Iran owning one of the world's largest gas fields.

Widespread impact on citizens and economy

Massoud Pezeshkian, Iran’s President, has also raised concerns over systemic failures in energy management, saying “Iran is experiencing shortages in electricity, water, gas, the environment, and finances, with some of these shortages bringing the country to the brink of a precipice.”

A power plant in Iran (Undated)
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A power plant in Iran

Power cuts in the summer of 2024 caused significant losses for industries, estimated at $11 billion, according to Ali Mahmoudian, head of the National Union of Alternative Fuels.

The closures of schools, universities, and government offices due to energy management have further strained Iran’s economy, costing an estimated $62.5 million per day.

As the country braces for a potentially devastating summer, officials are divided on how best to navigate the crisis. Ghalibaf’s comments that management reforms are key contrasts with the Ministry of Energy’s focus on immediate consumption reduction measures.

Iran now faces the dual challenge of overcoming internal inefficiencies and adapting to the growing energy demands of a population grappling with economic uncertainty and environmental degradation.

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Further Israeli strikes on Iran may lead to full-fledged war, FM warns

Jan 5, 2025, 18:10 GMT+0

Iran's foreign minister has warned Israel against the consequences of launching further airstrikes on the Islamic Republic, amid reports that the Israeli military is on high alert following a directive from the IDF chief.

"Iran is fully prepared for the possibility of further Israeli attacks,” Foreign Minister Abbas Araghchi told China's CCTV.

“I hope Israel will refrain from taking such reckless action, as it could lead to a large-scale war," he said in his December interview which was aired on Saturday.

Israeli news outlet Walla reported on Sunday that the Jewish state's military is on high alert following a directive from IDF Chief of Staff Herzi Halevi, amid fears Iran may take extreme actions against Israel.

Security officials warn that changes in the regional strategic situation could push Iran to act against Israel.

Along with the decline in the rial exchange rate and internal protests, Walla wrote that the Revolutionary Guards are transferring funds to Hezbollah via civilian aircraft, leading to the Chief of Staff ordering heightened vigilance.

Israel and Hezbollah in Lebanon are in the midst of a 60-day ceasefire but both sides have reported dozens of breaches amid the US-brokered truce.

The report's sources also highlighted uncertainty over Iran's stance ahead of Donald Trump's return to the White House later this month.

IRGC Quds Force chief in Baghdad to meet Shia militant leaders - Iraqi media

Jan 5, 2025, 16:57 GMT+0

Commander of the Quds Force of Iran's Islamic Revolutionary Guard Corps (IRGC) is visiting Baghdad to meet the leaders of Tehran-backed Shia groups as well as the Iraqi prime minister, Arab media reported Sunday.

Esmail Ghaani (Qaani) and a number of his advisers in the Quds Force arrived in Baghdad on Sunday morning to meet with the leaders of the Shia factions and the head of the Popular Mobilization Units (PMU), Falih al-Fayyadh, Erem News reported citing an Iranian source.

Iraq's Alsumaria TV says Ghaani will later meet with Prime Minister Mohammed Shia al-Sudani, who is expected to visit Tehran on Wednesday.

Iranian officials or state-run media have not yet confirmed reports about Ghaani's visit to the Iraqi capital.

In the meetings, Ghaani will discuss Washington's pressure on the Iraqi government to dissolve the PMU or integrate them into the Iraqi armed forces, the reports said.

The developments in Syria and the fall of Bashar al-Assad will also be a focus of the IRGC Quds Force chief's talks with Iraqi politicians.

The Popular Mobilization Units (PMU), also known as Popular Mobilization Forces (PMF) or Hashd al-Shaabi, was established in 2014 following a religious decree to combat ISIS, which at the time had taken control of four Iraqi governorates and threatened Baghdad.

Supported by the IRGC, these groups wield considerable power over Iraq’s governance, military operations, and energy infrastructure.

Despite their original mandate to combat ISIS, many of the militias have since expanded their activities, frequently targeting US forces and installations in Iraq with rockets and drones, and exacerbating tensions between Tehran and Washington.

While the Iraqi state-sponsored umbrella organization is largely composed of Shia Muslim groups, it also includes Sunni Muslim, Christian, and Yazidi factions with an estimated 128,000 fighters across 67 different armed factions.

Killing Soleimani was a punch in Iran’s mouth - Incoming national security adviser

Jan 5, 2025, 14:29 GMT+0

Following the killing of Iranian General Qassem Soleimani, Iran was "on its back foot," according to incoming US National Security Adviser Mike Waltz, who argued the strike by the then-president Donald Trump demonstrated how decisive action can deter Iran.

“Sometimes you've got to punch the bully in the mouth and then take a step back and watch everything settle down,” Waltz said in an interview with Sebastian Gorka on America First podcast.

“Their economy was tanking, but they were still mucking around,” Waltz said, adding, “When the President took action, he did it to great effect with no collateral damage.”

Soleimani was the commander of the Revolutionary Guards extraterritorial Quds Force and was killed in a US drone strike near Baghdad International Airport in January 2020, a move Trump openly acknowledged ordering.

MP calls Taliban a barrier to resolving Iran-Afghanistan water disputes

Jan 5, 2025, 13:37 GMT+0

The Taliban’s governance in Afghanistan has hindered regional cooperation on critical issues like shared water resources, according to a member of Iran’s Parliament National Security and Foreign Policy Committee.

“The most significant issue we have faced during the Taliban's rule has been about water rights and adherence to legal matters, rules, contracts, and treaties previously established with Afghanistan, which unfortunately have not been respected,” Fada-Hossein Maleki told ILNA on Sunday.

The comment comes amid escalating tensions over the construction of dams on transboundary rivers, which has significantly reduced water flow to Iran’s drought-stricken eastern provinces. The Pashdan Dam on the Harirud River, recently completed by Afghanistan, is the latest flashpoint in a long-standing dispute over water rights.

Maleki further criticized the absence of mutual cooperation under Taliban leadership, observing that the group's governance structure lacks the mechanisms seen in previous Afghan administrations, which allowed for regional collaboration on shared resources.

Esmaeil Baghaei, spokesperson for Iran's foreign ministry, underscored the importance of cooperation as well.

“Afghanistan is expected to cooperate in keeping the flow of water and removing the obstacles that have been created,” he said on Thursday, pointing to violations of the 1973 Helmand River Water Treaty.

The dispute over water rights is also critical for Iran’s Sistan and Baluchestan province, which depends on the Helmand River to sustain its wetlands, including the Hamoun Lake.

Once lush and teeming with life, the wetlands are now largely barren due to water scarcity exacerbated by upstream dams.

Hossein Sargazi, Deputy for Natural Resources and Watershed Management of Sistan and Baluchestan, warned about the worsening conditions: “All these measures threaten the inflow of water to eastern Iran. The situation in Sistan and Baluchestan has become very dire, and with the dust storms, the conditions are worsening.”

Sargazi also highlighted Afghanistan’s strategic use of water as a geopolitical tool. “The Taliban is seeking to establish hegemony through water. They want to claim control over mines, land, forests, and water, and thus require negotiation,” he said.

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Afghanistan’s water management projects have drawn interest from foreign investors, complicating the situation further. Sargazi pointed to the involvement of nations like China and Turkey, which are leveraging the water sector to secure strategic footholds. The Pashdan Dam itself was constructedwith assistance from an Azerbaijani firm, showing the international dimension of the issue.

Iran has long struggled with securing its water rights from Afghanistan. In 1999, the Taliban halted the flow of the Helmand River entirely, leading to environmental and economic repercussions for Iran. While the 1973 treaty guarantees Iran a share of the water, enforcement has been inconsistent, often leaving Iran’s eastern provinces in crisis.

Recent diplomatic efforts have done little to resolve the matter, and officials fear that ongoing dam construction could trigger a deeper crisis in a region already grappling with climate change and drought.

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