Management of energy plays an important role on having sustainable growth on the economy of developing countries. Electricity is part of the main infrastructure of any country, it can help develop many industries, and any shortage in electricity can jeopardize many heavy industries. In Iran, for many years electricity used to be subsided by the government hoping that economy grows faster but this caused a major problem for this industry since the electricity industry could not handle its expenses and faced with somewhat irreversible crises. In this paper, we present a system dynamic investigation to study the existing crises in this sector. The preliminary result of the implementation of system dynamic is that the sector needs to increase its productivity, significantly and lowers the cost of product.