Karafan Journal

Karafan Journal

Economic Analysis of Daily Two-Hour Scheduled Power Outages and Mitigation Strategies for Iran

Document Type : Original Article

Authors
1 Shiraz Energy Consulting Engineering Company (Moshiran)
2 Department of Electrical Engineering, Technical and Vocational University (TVU), Tehran, Iran.
Abstract
This paper analyzes the economic impact of daily two-hour scheduled power outages on residential consumers and the Ministry of Energy in Iran. Direct losses (e.g., food spoilage, electrical equipment damage, reduced comfort) and indirect losses (e.g., reduced household productivity, Ministry of Energy’s response costs) were estimated based on monthly electricity consumption data (300 kWh/household) and the base tariff (100 Tomans/kWh). The total monthly loss for 30 million households was estimated at 1.8 trillion Tomans, while the Ministry of Energy’s revenue reduction equated to 8% of monthly sales. Four short-term solutions—load management, peak pricing, residential solar microgrid development, and energy storage—were evaluated using a cost-benefit model and supply-demand simulations. Results indicate that combining smart load management with incentives for rooftop solar panels and home battery installations could reduce the need for outages by 70% and significantly mitigate national economic losses. Policy recommendations for rapid and effective implementation of these solutions are provided.
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Articles in Press, Accepted Manuscript
Available Online from 17 May 2026

  • Receive Date 09 June 2025
  • Revise Date 21 July 2025
  • Accept Date 17 May 2026