2nd Work Group Meeting with stakeholder

“Market for Energy Efficiency and Environment (M3E) addresses many of the challenges of the energy sector in Iran.”

“Market for Energy Efficiency and Environment (M3E) addresses many of the challenges of the energy sector.” Dr. Zeinab Hamidzadeh, National Project Director of the M3E implementation project said at the second working group meeting with the Market stakeholders.

In the beginning of the session, Dr. Zeinab Hamidzadeh explained the philosophy of creating and the urgency of implementing of the M3E. She mentioned “the energy carriers subsidy debate is one of the most controversial issues in the country’s political, economic and social discussions. Many proposals to reform the subsidies have been received but none of them was really providing an effective solution.”

Energy consumption depends on the energy prices

According to Dr. Hamidzadeh, the statistics show that energy consumption depends on the energy tariff. Therefore, the issue of energy subsidy in Iran and its resolution is a matter of priority.

 A problem centered approach is needed

Dr. Zeinab Hamidzadeh stated that based on these points the philosophy of creating the M3E is adopting a plan to incentivize energy efficiency without any social or political consequences by encouraging public and private entities to enter the energy efficiency market.

 What are the challenges of the energy sector?

Hamidzadeh continued “One of the challenges in the current situation in the country is that the low-tariff energy consumers have almost no motivation to improve their consumption pattern. In addition, private investors and companies are not able to profit from investments in energy efficiency projects.”

Due to Hamidzadeh, the second challenge that made Iran lag far beyond successful countries in implementing energy optimization projects is the definition of public sector authority. In Iran the role of the Government is much more than governance, regulatory and supervision and this creates many problems for running a free market.

Hamidzadeh addressed the third challenge to be the lack of proper energy efficiency standards and the lack of a system of penalties and compensations.

What are the solutions?

She also explained how M3E will provide the solutions to the above challenges: “The current form of the M3E can solve the first challenge, which was the lack of incentives for low-tariff consumers to save energy.” The second challenge, which is related to the role of government institutions and activation of private sector, is also solved optimally with the implementation of M3E. But the third challenge regarding the placing penalties for environmental damages, are not likely to be touched at the initial stage of implementing of M3E.

Following her talks in this meeting, each of the stakeholder’s representatives presented a short report and commented on their tasks related to the M3E bylaws and regulations.

Furthermore, Ms. Ayda Shahrokh, the Head of IREEMA project office in Tehran presented an overview of the cooperation of VPST and Ministry of Environment and Nature Conservation (BMU) and reported the IREEMA project activities in implementing of the M3E.

Source: Iranian Vice President of Science and Technology News Database


Please find below the presentation of the “M3E Coordination Stakeholder Meeting / 2nd WG Meeting” on January 30th in Tehran.

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