In the last two decades, the liberalization process has been the basis for a major change in the industry in order to compete in the manufacturing and supply sectors of the electricity industry. The creation of electricity markets has raised new issues such as the creation and development of regional markets. Read more
Vivian Yee is the Cairo bureau chief, covering politics, society and culture in the Middle East and North Africa. She was previously based in Beirut, Lebanon, and in New York, where she wrote about New York City, New York politics and immigration. More about Vivian Yee
In light of Iran and Qatar''s recent electricity grid connection, Iran should seek to expand its energy diplomacy and utilize its electricity sector to strengthen economic cooperation and regional security in the Middle East.
Sada is an online journal rooted in Carnegie''s Middle East Program that seeks to foster and enrich debate about key political, economic, and social issues in the Arab world and provides a venue for new and established voices to deliver reflective analysis on these issues.
Last February, during Iranian President Ibrahim Raisi''s visit to Qatar, the two countries agreed to connect electricity grids. Currently, Iran''s electricity network is connected to Iraq, Azerbaijan, Armenia, Turkmenistan, Afghanistan, and Pakistan. Qatar has one of the highest electricity consumptions in the world, (15.316 kWh per person per year) while Iran''s electricity generation and distribution network maintains a capacity of only around 90,000 MW.
Homayoun Brahmandpour, Head of the Center for Development of High Capacity Power Transmission Technology, asked, "Why didn''t we have a long-term strategy and roadmap for the stakeholders in the regional electricity sector [so that we can] become the regional electricity hub?" Similarly, Payam Bagheri, stressed the importance of turning Iran into a regional electricity hub, where Iran would meet both domestic needs and the needs of other countries in the region.
Applying Iran''s energy diplomacy inclinations to the field of electricity is not appropriate, and certainly not resourceful. There are several other countries in the region who have already connected their electricity systems. Egypt and Saudi Arabia are connected; as well as Jordan and Iraq. Siemens signed an agreement with Afghanistan to turn the country into a central Asian electricity hub. Finally, the UAE invests heavily in and exports nuclear power. Given Iran''s inability to sell crude oil under current circumstances, electricity exports could strengthen Iran''s currency.
Weak energy diplomacy in Iran''s foreign policy apparatus has prevented Iran from playing an important role in supplying electricity to neighboring countries, including Qatar, despite its great potential. The Raisi administration must increase the role of renewable energy in the country''s energy mix and provide the conditions for attracting the capital and technology needed in the electricity sector. Ultimately, if Iran increases its electricity transmission with other countries in the Middle East, it will both increase economic cooperation and strengthen regional security.
Umud Shokri, PhD is a senior foreign policy advisor, energy strategist, and an advisor at Gulf State Analytics (GSA). He is also the author of US Energy Diplomacy in the Caspian Sea Basin: Changing Trends Since 2001. Previously, he served as a visiting research scholar at the Center for Energy Science and Policy (CESP) at the Schar School of Policy and Government at George Mason University.
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