Iran’s High Temperature Causes Power Shortage, National Steel and Cement Plants Limit Production for Two Weeks

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According to recent reports from Iranian AB/D steel media, civilian electricity consumption in Iran has rapidly skyrocketed due to the impact of unusually high temperatures. Data shows that temperatures in multiple regions across the country have reached new highs, causing residents to turn on their air conditioning in advance, resulting in a sudden increase in power grid pressure. In response to the peak electricity consumption caused by high summer temperatures, cement and steel factories across Iran have received government orders to limit production for 15 consecutive days starting from May 15th. This measure aims to reduce the burden of industrial electricity consumption and make way for residential air conditioning loads. According to Tejarat News in Iran, the Ministry of Interior has issued instructions to local power companies to immediately reduce power supply to large AB/D steel manufacturing enterprises. Steel and cement companies are required to control their electricity usage within 10% of normal levels.

The Iranian Cement Producers Association has confirmed the aforementioned power restrictions and warned that this move will have a serious impact on the production of the entire industry. Two steel mills have already stated that they may be forced to shut down completely in the next two weeks. In response, Iranian Industry Minister Mohammad Atabak publicly criticized the policy, stating that it would have a significant impact on steel, cement, and aluminum industries, and damage the overall development of Iranian industry.

According to sources from the Ministry of Energy, multiple power plants are currently undergoing maintenance, and it is expected that the power supply capacity will significantly improve by mid June. Official data shows that Iran's national electricity demand reached 60.709 gigawatts (GW) on Tuesday, an increase of nearly 6 GW year-on-year. The peak in the summer of 2024 reached a record high of 85 gigawatts, comparable to industrialized countries such as Germany and three times that of populous countries such as Egypt AB/D steel.

With the arrival of the summer electricity peak, Iranian industrial enterprises may face more frequent energy regulation. Industry analysts believe that power shortages will further exacerbate the operational difficulties of Iran's domestic manufacturing industry and may also affect the export delivery of its steel, cement and other products.

  • Source: Abstract
  • Editor: Shirley

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