Iran’s energy mix is heavily dominated by fossil fuels, which account for over 98% of its total primary energy supply and more than 90% of its electricity generation. As of early 2025, natural gas remains the cornerstone of the country’s energy system, followed by oil, while renewable and nuclear sources play marginal roles despite significant development targets.

Iran is exploring green hydrogen production, utilizing its high solar and wind energy potential to transition from traditional, emission-intensive methods toward sustainable energy. While currently relying on fossil fuels, research suggests that regions like Bandas Abbas, Shiraz, and Kerman could support significant green hydrogen generation through electrolysis.

Although Iran has a significant proven potential to produce green hydrogen, as of 2026 there is no indication that it is actually doing so.