In order to facilitate the crypto mining industry’s access to green power, Iranian authorities have revised a few regulations. Licensed miners will now have access to discounted electricity produced nationwide from renewable sources.
The Iranian Ministry of Energy has altered some crypto mining rules to make it easier for organizations licensed to print digital currency in the Islamic Republic to access renewable energy.
According to Bargqnews, a recently issued decree exempts miners from the requirement to use on-site power generation capabilities and allows them to purchase electricity produced using renewable sources both domestically and through the national grid.
Until recently, Mohammad Khodadadi, a representative of the Iran Power Generation, Transmission and Distribution Company, noted that mining companies could only enter into agreements with renewable power plants that were situated in the same province (Tavanir).
According to the Financial Tribune, an English-language business news publication, Iranian companies engaged in legal clean energy mining will not be required to pay the standard transmission fees in order to use the nation’s electricity network.
The mining industry has seen improvements since the Iranian government announced its decision to permit green energy power plants to supply authorized miners in December. The energy ministry in Tehran took the initiative to make that change.
The energy-intensive bitcoin mining has been partially blamed for Iran’s power shortages during the sweltering summers and chilly winters. Registered crypto farms were given multiple orders to turn off their power-hungry machinery in 2021.
Tavanir once more instructed miners to halt operations until the end of the summer, citing anticipated electricity shortages amid rising demand due to an increase in cooling-related consumption. The nation’s crypto community reacted negatively to the restrictions.
Additionally, the state-owned utility promised to take harsh action against unregistered cryptocurrency miners by increasing fines for such activities by 400%. Almost 7,000 facilities minting virtual currency in violation of the law were found and shut down by the Iranian government, according to official data made public in May.
These improvised crypto farms are now a common source of income for many Iranians and are frequently powered by free or cheap household electricity. Tavanir employees have so far seized hundreds of thousands of mining devices during numerous raids.