Crypto Analytics

Iran allows renewable power plants to power crypto miners

Authorities in Iran have decided to allow renewable electricity generation facilities to sell electricity to licensed cryptocurrency miners. The move came after the government urged mining companies to cease their operations to avoid winter outages.

Crypto miners in Iran to digitally mine coins using renewable energies

Regulated companies mining cryptocurrencies in Iran will gain access to green energy, local media reported. The Ministry of Energy in Tehran has issued new rules that enable power plants to supply electricity from renewable sources.

“Legal miners can make agreements with renewable power plants on negotiable terms and tariffs,” said Mohammad Khodadadi, head of the Tavanir Department responsible for mining, said the ISNA news agency. He also stressed that the Department of Energy will have a role to play in setting the exact tariffs.

Iran’s electricity generation, distribution and transmission company, Tavanir, is the country’s state-owned utility company, which recently ordered authorized miners to disconnect their devices from the grid. The measure is part of an effort to prevent power outages, as energy demand increases with falling temperatures.

The Ministry of Energy has been trying to reduce the use of liquid fuels for generation since last month, Tavanir’s spokesman Mostafa Rajabi Mashhadi recently told the state broadcaster IRIB. Closing licensed crypto farms is one of a series of measures to avoid electricity shortages this winter.

Iran legalized Bitcoin mining in 2019 and introduced a licensing system for companies operating in the industry. Registered crypto farms buy electricity at higher export rates and many Iranian miners avoid mandatory registration in order to benefit from subsidized household prices.

In May, then President Hassan Rouhani announced a temporary ban on crypto mining amid increasing demand for electricity and inadequate supplies due to exceptionally hot weather and droughts. Authorized mining companies have also been blamed for the shortage.

The country’s crypto community criticized the restrictions after it is estimated that legal miners only use around 300 megawatts a day, while underground crypto farms burn ten times more. The ban was canceled in September when electricity demand declined in cooler weather.

Tavanir cracks down on illegal mining operations all year round. Iranian media announced in November that the utility company had confiscated over 220,000 mining machines switch off almost 6,000 crypto farms in different regions of the Islamic Republic.

Do you think Iranian crypto miners will accept the government’s offer to use renewable energy? Do share your thoughts on the matter in the comments below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy journalist from Eastern Europe who likes Hitchens’ quote: “Being a writer is what I am and not what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two more Sources of inspiration.

Photo credits: Shutterstock, Pixabay, Wiki Commons

Source: Crypto News Austria

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button