Analysis of ultimate energy consumption by sector in Islamic republic of Iran

Total ultimate energy consumption in Iran was 1033.32 MBOE in 2006, and increased at an average annual rate of 6% in 1996-2006. Household and commercial sector has been the main consumer sector (418.47 MBOE) and the fastest-growing sector (7.2%) that followed by transport (264.65 MBOE; 7%), industry (238.86 MBOE; 5.3%) and Agriculture (37.39 MBOE; 2.1%). Iran's ultimate energy consumption pattern over the last decades is inefficient and contributes towards the excessive consumption of fossil fuels which produces several quantities of pollutants and green house gases. Low price of energy and high subsidies represent an effective incentive for inefficient energy consumption pattern and accelerate energy consumption and environmental pollutions. The present paper provides a detailed analysis of the ultimate energy consumption in Iran by sectors during the last 10 years. We conclude that energy conservation policies by sectors are necessary in Iran and also the paper includes several suggestions for each sector to reduce energy consumption.