Iran is facing large challenges in the area of energy policy. In order to illuminate these challenges and the problems and possibilities, which are present, firstly, the current energy consumption patterns have been analyzed in Iran as well as the energy policy of the Iranian government. Based on this analysis, the alternative concepts have been then formulated for Iran`s future energy. The increase in energy usage in Iran is distinctly out of proportion with the development of economic productivity. Negative structural characteristics of this system are: first, an above average energy intensity; second, an increase in energy consumption in the traffic sector; third, a high growth rate in usage of electric energy; and lastly, an above-average amount of stress to the environment. Traditionally, Iran`s energy policy has focused on satisfying the growing demand for energy by oil and, in the last fifteen years, by successively expanding natural gas. However, the further development of the natural gas supply only makes sense within the context of a holistic energy policy, which takes into account the principles of sustainable development. In the short term, such a policy would take advantage of both considerable energy saving techniques, as well as potential renewable energy sources. In the long term, such a policy would strive for the complete transfer to renewable energy sources and technology.