New-institutional explanations for energy transition in Iran: investigating the interplays between institutions, actors, and technology

This paper explores the limited success of energy system transitions in Iran by analysing the interactions between renewable energy institutions, organisations, and individuals. While most literature focuses on successful sustainability transitions, little attention is given to failures, particularly in fossil-rich developing nations like Iran, which face unique socio-economic and political challenges in diversifying energy sources. Using a grounded theory approach, this study draws on qualitative interviews with public organisations, renewable energy investors, and policy document analysis. Findings reveal key barriers, including weakened credibility of renewable energy policies, lack of sustainability recognition among policymakers, and the absence of adaptive business models promoting autonomy and flexibility. Additionally, Iran’s energy security crisis is examined as both a risk to political and social stability and a potential catalyst for shifting perspectives toward sustainability. The study highlights the urgent need for governance reforms, inclusive policy frameworks, and a deeper understanding of the societal aspects of energy transitions.