Energy Transition and Environmental Sustainability in Iran: Pros and Cons Through SWOT Analysis Approach

Abstract

This study investigates the pros and cons of the energy transition process as a part of environmental sustainability’s policy in Iran. To analyse the strategic transition towards clean energy in Iran and extract practical policies and operational solutions, the SWOT (Strengths, Weaknesses, Opportunities and Threats) technique was applied. Based on the findings, Iran’s most significant strengths towards greening economy are low operational cost of clean energy and academic experts’ involvement in localisation and environmental protection. Non-renewable energy trade, high initial costs, and Iran’s economic and foreign policy instability are the major weaknesses. Moreover, the opportunities include diversifying the economy to increase income and reduce dependence on oil. Finally, a lack of institutional capacity and coordination with related industries were the biggest threats. Based on the internal and external matrix, Iran’s energy transition process towards clean (renewable) energies is strategically in ST (Strengths and Threats) situation. It means, this transition in Iran has strengths (i.e. low cost of clean energy) as well as threats (i.e. increased competition in the global energy market) due to the internal and external factors, which can take advantage of existing strengths and predict future threats to reduce the effect of threats on the movement towards clean energy.