Private sector enters gas demand management with goal of 35% savings

A new data-driven model for managing natural gas consumption, centered on so-called energy service companies, has entered the implementation phase following the signing of 22 operational contracts between the National Iranian Gas Company and private-sector firms. The initiative aims to optimize consumption, reduce energy waste and cut end-use gas consumption by 25% to 35%, SHANA reported.
Official figures show that about 22% of the country’s produced energy is lost at the final consumption stage. As a result, energy policy has shifted from expanding production to managing demand. Under targets set in the country’s Seventh Development Plan, the equivalent of 200 million cubic meters of gas per day must be recovered through efficiency measures by the end of the program. Against this backdrop, leveraging private-sector capacity for gas demand management has become a key priority of the 14th administration.
According to SHANA, two types of contracts have been defined for the program. Under the first model, an energy service company acts as a gas retailer, taking responsibility for distribution and consumption management within a defined area. Under the second, companies focus solely on consumption optimization and generate revenue from energy savings certificates.
Estimates indicate that full implementation of the contracts could reduce end-use gas consumption by 25% to 35%. Beyond easing the country’s energy imbalance, the measure is expected to channel gas resources more effectively to productive and energy-intensive industries, lower household utility bills, improve network efficiency, enhance equipment quality and reduce environmental pollution.
Experts say the model could open new investment opportunities for the private sector and offer a replicable framework for sustainable energy management. Continuous monitoring, data collection and trend analysis are expected to help identify high-consumption points, optimize equipment scheduling and design economic incentives for consumers to change behavior.
Officials argue that the initiative is not merely a technical solution but a comprehensive tool for advancing the country’s economic, environmental and social objectives in energy management.
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