Iran to shield industry from blackouts at public's expense amid discontent

As Iran grapples with a worsening electricity crisis, the government has resolved to prioritize power supply to industries, sacrificing residential comfort and daily public services in a bid to avert economic collapse.

“There will be no such thing as production if we cut off the supply of gas in winter and electricity in summer to industries,” government spokeswoman Fatemeh Mohajerani said on Monday, justifying the decision to shield factories and major production centers from the worst of the power cuts.

“So instead of imposing power cuts solely on industries, we have directed some of it to domestic consumption.”

Iran is currently facing a peak-hour electricity deficit of around 20,000 megawatts. With the summer heat intensifying and water levels in hydropower dams at historic lows due to years of drought, power outages—both scheduled and unexpected—have become routine.

The government of President Masoud Pezeshkian blames inherited problems for the shortage. In parliamentary hearings for his cabinet approval in August last year, energy policy dominated the debate.

Lawmakers voiced concern at the time that the growing electricity gap could bring more severe blackouts and industrial shutdowns than before.

Economic survival over public comfort

The move to protect industry over residential demand is a calculated risk. Iran's manufacturing sector, already battered by sanctions, inflation, and a volatile exchange rate, is considered too critical to fail.

If industries grind to a halt, Iran risks deeper economic stagnation. But if public resentment continues to grow amid daily blackouts, the political costs could be just as severe.

Many industries, including cement plants and steel factories, which require uninterrupted energy for their kilns and machinery, are particularly vulnerable to power cuts.

The total annual loss from power cuts to the steel industry last year, according to the head of the Isfahan Chamber of Commerce, Amir Kashani, was estimated at around $4 billion.

Power cuts affecting daily lives

Widespread dissatisfaction is mounting, as daily life for millions is disrupted by blackouts as the daily power cuts are more than an inconvenience—they are a source of hardship, danger, and economic loss in the lives of millions of ordinary Iranians.

Social media is filled with videos and reports of people trapped in elevators, traffic lights failing and causing massive jams, and water not reaching upper floors of apartment buildings due to non-functional pumps.

Mobile phone signals have also been affected, as network operators are forced to shut down towers to prevent equipment damage when backup batteries run out.

Many small businesses, including bakeries, restaurants and cafes and grocery stores, report spoilage of perishable goods, compounding their financial strain.

Adding to the frustration, the government has shifted working hours for state offices to 6:00 AM in an effort to avoid peak hours, a move that has caused widespread disruption for employees and service recipients alike.

On Monday, authorities announced that school hours would also be adjusted to follow this new schedule.

A long-term crisis years in the making

Experts argue that Iran’s electricity shortage is not a sudden development but the result of decades of mismanagement and underinvestment.

Despite having the world’s second-largest reserves of natural gas, Iran has failed to expand its generation capacity or modernize its energy infrastructure.

“This crisis did not arise overnight, nor can it be solved in the short term,” Mehdi Masaeli, secretary of the Electricity Industry Syndicate, recently told Zaman-e Eghtesad, warning that officials should not downplay the severity of the situation.

Resolving the crisis would take at least three years, he said, citing the need for significant financial investment, equipment procurement, and coordinated management.

Authorities have also blamed cryptocurrency mining for electricity outages for years.

Earlier this week, Energy Minister Abbas Aliabadi said illegal use of miners has expanded and is responsible for around 1,000 megawatts of energy consumption.

He also urged citizens to report illegal mining to the authorities. Last year, authorities offered a bounty to combat illegal cryptocurrency mining activities. According to Aliabadi, authorities have seized over 220,000 illegal mining devices over the past year alone.