As long as you adhere to approved tariffs and have a license, power plants in Iran can operate as Bitcoin mines. Cryptocurrency mining in Iran has already been growing since 2019.
Like Ukraine, Iran is determined to extend the scope of its power plants to Bitcoin mining. The announcement was made official on July 27 by Mostafa Rajabi Mashhadi, deputy general manager of Tavanir, the national electricity producer.
But if the power plants will be able to function as Bitcoin mines in this way, they will have to meet certain conditions. This activity remains in fact very supervised by the Iranian authorities.
Mining authorized for power plants but at regulated tariffs
It is therefore imperative that power stations comply with regulated tariffs and obtain a license from the State beforehand. Another condition set for power plant managers: the ban on exploiting subsidized fuel oil to supply energy to cryptocurrency mining.
The surge in Bitcoin’s price in recent days could whet some appetites. The authorities therefore warn that they will be vigilant with regard to compliance with pricing conditions. “We will not allow anyone to abuse the tariffs provided for the agricultural and industrial sectors to produce bitcoin when it is worth more than $ 9,000,” warns Mashhadi.
For Iran, this decision to extend mining to power plants is a second step after its opening in July 2019 to the industrial sector. Since this government endorsement, 1,000 crypto mining licenses had been granted to companies in January, Cointelegraph reports.
This new digital activity, however, represents a significant blow in terms of energy. According to the country’s official news agency, 14 crypto miners mobilized more than 300 megawatts (MW) of power. But at full capacity, mining is expected to generate $ 8.5 million for the local economy.
300 megawatts for 14 mining farms
300 megawatts is also the capacity of the block granted in 2019 by the Régie de l’énergie du Québec to blockchain and crypto-currency players established in the territory. On the other hand, the country had excluded the application of a dedicated tariff for this industry.
Under embargo, this power remains important for Iran. Electricity nevertheless remains cheap in the country ($ 0.007 per kilowatt / hour). However, this rate has been adjusted for the crypto industry and set at $ 0.07 per hour, the export rate. Bitcoin mining is nevertheless lucrative, especially when its value reaches such levels.
A year earlier, the Iranian authorities estimated that the production of a Bitcoin amounted to around $ 1,400 to the state in the form of subsidies. However, there is no question of allowing the all-round development of industrial crypto mining operations.
The report of a company operating without a license in this sector is moreover rewarded to the tune of approximately 2000 dollars.