Natural gas imbalance has become a major challenge for Iran’s energy sector, making demand-side management and energy efficiency key policy priorities alongside expanding supply capacity. In response, the government approved the Regulation on the Activities of Natural Gas Aggregator Companies in 2025, establishing a framework for private-sector participation in gas-saving projects.
How the Gas Aggregator Model Works
Under the scheme, private gas aggregator companies implement energy-efficiency projects and recover their investments through energy savings and tradable energy-saving certificates on the Energy Exchange. The model aims to turn energy savings into an economic asset while creating a market for energy-efficiency services without relying directly on government financing.
Around 70 companies have reportedly obtained preliminary eligibility to operate as gas aggregators. However, actual operations require approved projects, technical verification, measurement and verification (M&V), and the issuance of energy-saving certificates, meaning the market remains at an early stage of development.
Economic Rationale
The model’s main economic driver is the gap between relatively low gas tariffs for consumers and the market value of energy-saving certificates. This difference can increase the economic value of saved gas and create sufficient returns to attract private investment in energy-efficiency projects.
Key Advantages of the Gas Aggregator Scheme
- Creates private investment opportunities in energy efficiency.
- Reduces gas imbalance at lower cost than expanding supply.
- Improves equipment efficiency and lowers operating costs.
- Develops the energy-services market and reduces bureaucracy.
- Supports energy technologies and knowledge-based companies.
- Expands efficiency projects across major consumption sectors.
- Enables smart energy management and stronger energy governance.
Key Challenges of the Gas Aggregator Scheme
- Weak consumer incentives and limited market trust
- Contractual and M&V uncertainties
- Weak regulatory and institutional support
- Shortage of ready-to-implement projects and validated technologies
- Need for a stronger role for the National Iranian Gas Company
Policy and Implementation Recommendations
The recommendations focus on improving M&V mechanisms, strengthening financial and regulatory incentives, and expanding pilot projects and ready-to-implement projects to reduce investment risks. They also call for a stronger role for the National Iranian Gas Company in market development and oversight, alongside consumer benefit-sharing, industrial modernization, and easier market entry for innovative companies to promote competition and private investment.
This study is conducted by Ali Taherizadeh, Executive Deputy of Water and Energy Synergy Home and Energy Economics Researcher in 2026.
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