Jul 8, 2014, 7:46 PM
News Code: 2720697
0 Persons
Energy management challenges

Tehran, July 8, IRNA -- The low price of energy in underdeveloped and developing countries, in which industries are controlled by the government, creates several problems in energy management and reduces the significance of energy optimization.

The English language newspaper Iran Daily wrote in the Opinion column of its Wednesday edition that unfortunately, banks in the above countries are controlled by the government. Therefore, extension of financial services to energy optimization projects faces serious problems, particularly because of the entrenched bureaucracy.

Given the lack of efficiency of natural mechanisms and the government’s control over banks and industries, strategies such as energy rationing, determination of penalty and forced completion of projects to optimize energy are adopted, which are opposed by industrial managers.

In federal states, power is distributed between the central and local governments, and a triangle formed by the private sector, local government and the central government follows energy-related issues. The link among these sections is influenced by the domestic situation and the presentation of a particular pattern becomes difficult.

Since energy is of high importance in sustainable development, one of the key ministries is delegated with the task of managing energy issues.

Energy policymaking and planning are supervised by a ministry and another organization or agency acts as an intermediary between the government and private sectors that produce and consume energy.

Companies offering energy services play an important role in energy optimization. Ample experiences, legal and financial systems for investment, lack of imposition of costs on industrialists and participation in energy optimization profits assist these companies in industrialized countries.

The most important issue about these companies is that industrialists are highly motivated to reduce the cost of energy optimization in market-oriented countries.