Tehran, Iran – The Iranian electricity company announced today that it has completely halted its electricity exports to Iraq, with supplies dropping to zero megawatts. This move is indicative of the extent of the political and economic pressures Tehran is facing, in addition to the international complexities it is currently confronting.
Energy balance shift
A statement issued by the company revealed a sharp shift in Iran’s role as a regional energy player. Figures showed that Tehran has become a net importer of electricity to meet its domestic deficit. The trade pattern is as follows:
Exports: Currently limited to only 20 megawatts to Pakistan and 30 megawatts to Afghanistan. Imports: Iran currently imports 507 megawatts from Turkmenistan and Armenia to cover its domestic shortfall.
Politics behind the “shutdown”
Mohammad Allahdad, deputy for transportation and foreign trade at the Iranian Electricity Company, attributed the sudden halt to “international pressure and complex political relations.” He added that there were also intertwined regional circumstances. The Iranian official noted that joint energy exchange projects with neighboring countries were experiencing a “sharp slowdown” in implementation, citing logistical difficulties. Furthermore, negotiations were stalled, and obstacles prevented the movement of officials involved in the matter.
The paradox of the internet and cryptocurrency mining
In a notable point, Allahdad explained that the current internet outage in Iran has not affected the power generation capacity of electricity plants. On the contrary, it has indirectly eased pressure on the grid. The outage halted cryptocurrency mining activities, thus saving approximately 1,500 megawatts of electricity compared to previous periods.
Challenges facing Baghdad
This widespread blackout presents the Iraqi government with a significant challenge in securing rapid alternatives, especially with February approaching, a month that typically sees fluctuating power supplies. This comes amidst Iraq’s stalled efforts to establish electrical interconnection with the Gulf states and Jordan, efforts aimed at reducing its overall dependence on Iranian gas and electricity.
