According to the Public Relations Department of the Jahanfoulad Industrial Group, during a meeting held on Saturday, May 10, 2025, at the Kermanshah Chamber of Industry, Mine, and Trade with the presence of Mr. Khanpour (Deputy for Economic Affairs of the Governor’s Office), Mr. Alfatiania (CEO of the Regional Electricity Company), Mr. Bagherkhani (Acting Head of the Industry, Mine, and Trade Organization), Mr. Kordestani (CEO of the Industrial Parks Company), Mr. Alireza Pouri (CEO of the Electricity Distribution Company), and the esteemed board members of the Chamber, key challenges in the energy sector were discussed.
Mr. Jahanbakhsh Shokri, Head of the House of Industry, Mine, and Trade: (Khaneh Sanat)and Chairman of the Board of Jahanfoulad Industrial Group, warned about the serious crises facing production and the consequences of the current situation continuing.
Emphasizing that the current electricity quota is not sufficient for industrial needs, Shokri stated:
“We are in a situation where even operational units are at risk of shutdown and massive workforce downsizing. As the President’s visit to the province approaches, it is expected that increasing Kermanshah’s electricity quota becomes a top priority.”
Criticizing the Ministry of Energy’s approach, he added:
“While the Ministry has for years collected fees for connections and services, it now expects producers to secure their own electricity supply. This is not only illogical but impossible for many units. Despite its massive structure, the Ministry has failed to meet the country’s industrial infrastructure needs.”
Shokri thanked the efforts of the provincial electricity companies, noting:
“Regional and distribution electricity managers have gone beyond their duties, but fundamental solutions require national-level decisions.”
He further commented on regulatory burdens and price controls:
“If energy carriers are to be priced freely, industries must also be allowed to sell their products based on global rates. Otherwise, production cannot continue in its current form, and units will exit the market one after another.”
Head of the House of Industry, Mine, and Trade also called on the Deputy for Economic Affairs to ensure an industry representative speaks during the President’s visit:
“We hope someone from within the industry, who truly understands its challenges, gets the opportunity to speak — not just someone representing their own unit’s concerns.”
In closing, Shokri emphasized:
“We expect the government to not only reform energy policies but also implement clear support packages for industrialists. The banking system, tax office, and social security organization must, at the very least, adopt a supportive stance in the short term to ensure production units can survive.”
In the continuation of the session, Mr. Almasi, CEO of Simafoulad, raised serious concerns over energy imbalance and neglect of the private industrial sector. Criticizing current energy policies, he said:
“If the policymakers believe production should stop, let them clearly say so. This uncertainty is more damaging than a full stop. Many companies are unsure whether to continue, and most have concluded that the path forward is economically unviable.”
Mr. Almasi highlighted Jahanfoulad Industrial Group’s 2023 export data, saying:
“Two companies from Jahanfoulad exported over $110 million last year, providing significant financial benefit to the government. Still, our group suffered losses exceeding 3 trillion rials (~$60 million). The question is: What support has the government offered in return?”
He explained the situation of energy infrastructure investment:
“At Bistoon Steel, we’ve invested over 150 trillion rials ($3 billion), but due to unrealistic pricing and energy limitations, we are unable to produce. Our power plant investment has already surpassed 10 trillion rials ($200 million), and we still need another 3 trillion rials (~$60 million) to complete it. Yet no support has been provided for its operation.”
The Simafoulad CEO added:
“We are the first steel smelting company in the country to generate energy without using gas, relying instead on furnace heat recovery. Our main fuel is coal, and we have minimal dependence on government energy resources. Still, no institution questions why such significant investments remain idle.”
He concluded with criticism of certain executive bodies:
“Our greatest challenge is not the energy shortage, but the lack of decision-making and institutional neglect. The government must adopt a deeper understanding of private industry; otherwise, this trend will not only halt production but also waste national investments.”
During the continued session of the economic stakeholders’ meeting focused on managing the energy imbalance, Dr. Khanpour, Deputy for Economic Affairs of the Governor’s Office, pointed to the national-level challenges of energy imbalance and stated:
“Ensuring a stable energy supply for industrial units has been one of the province’s key demands during the President’s upcoming visit. Developing energy infrastructure is essential for the growth and vitality of the industrial sector.”
Referring to the efforts made so far, he added:
“With the active follow-up by the honorable Governor and the support of IMIDRO, the construction of an 80-megawatt power plant in the Zagros Industrial Park has been placed on the agenda.”
Dr. Khanpour also announced the signing of several memorandums of understanding (MoUs) for building new power plants and emphasized:
“With the commissioning of these power plants, a major step will be taken toward ensuring a sustainable energy supply for the province’s production units.”
He added:
“Thanks to the Governor’s follow-ups and cooperation from IMIDRO, a plan has been set in motion to construct an 80 MW power plant in the Zagros Industrial Park. Several other power plant MoUs have been signed, and with their operation, a major step will be taken toward sustainable energy supply for production units in the province.”
Praising the active presence and demands of industrialists, he reiterated continued support for production and described them as the “economic commanders of the country.” Later, Mr. Marzi, Executive Secretary of the Chamber, appreciated the Deputy Governor’s support and outlined recent activities:
“Since August 2024, the Chamber has taken responsibility for organizing energy supply infrastructure for industrial units. A cooperative was established to build CHP and solar panel systems on rooftops and industrial areas within the parks. However, despite follow-ups, we haven’t yet succeeded in securing the necessary financial facilities.”
Mr. Olfatiania, CEO of the Western Regional Electricity Company, expressed serious concern over the country’s energy supply:
“Last winter, we faced a critical fuel shortage, and this summer we expect continued severe electricity imbalance. Dam water levels have dropped to nearly one-third, significantly reducing hydropower plant output. Many power plants couldn’t even undergo annual maintenance due to lack of fuel and had to remain on standby. As of May, consumption management has officially started, and early-season heatwaves have worsened the crisis.”
