4 FAQs about Iranian energy storage equipment subsidies
How much do Iran's energy subsidies cost?
In 2010, Iran's energy subsidies were estimated at around $70 billion (Salehi-Isfahani et al 2015), a significant burden that contributed to fiscal deficits and hindered investment in critical infrastructure.
How does Iran's subsidized fuel smuggled abroad affect its economy?
For example, up to 15 percent of Iran's subsidized fuel is smuggled abroad (Farhikhtegandaily 2025), resulting in lost domestic revenue and reinforcing inefficiencies. The economic pressure that sanctions place on Iran make immediate internal reform of Iran’s energy sector all the more relevant.
Will Iran's energy sector continue to impose economic and environmental costs?
This pattern underscores the inefficiencies generated by Iran’s heavy energy subsidies and supports the argument that without structural reforms, Iran’s energy sector will continue to impose economic and environmental costs on the nation.
Is Iran's energy sector hampered by international sanctions?
This paper argues that Iran’s energy sector is hampered not only by international sanctions, but more crucially by internal policy failures including poorly targeted subsidies, fragmented governance, and underinvestment in infrastructure and renewables.