claims blaming illegal cryptocurrency miners for the continuing
electricity shortages in the country. The department believes the
state-run utility company, Tavanir, has overestimated their role in the
power deficit.
Illegal Miners Burn Less Energy Than Tavanir Estimates, Ministry of Industries Says
An official from the Iranian Ministry of Industries, Mining and Trade
has denied claims by the Iran Power Generation, Distribution and
Transmission Company (Tavanir) that illegal crypto miners are largely responsible for the ongoing power shortages in the Islamic Republic. Quoted by Way2pay
and the English-language business daily Financial Tribune, the
ministry’s Director of Investment and Planning Alireza Hadi stated:
Figures announced by Tavanir seem to be highly
exaggerated. The consumption of illegal miners is considerably lower
than the 2,000 megawatts estimated by the utility.
According to Hadi, this amount of electrical energy would equal the
power usage of 3 million pieces of mining hardware. Tavanir insists,
however, that unauthorized miners are still consuming that much, despite
having shut down over 5,000 illegal mining facilities across Iran. It
also confiscated more than 213,000 mining devices with a capacity of 850
MW.
The unusually hot summer, following insufficient rainfall earlier
this year, led to a serious increase in power demand for electricity in
Iranian cities. Tavanir listed cryptocurrency mining as one of the main
reasons for the nationwide shortages. Last week, the company’s spokesman
Rajabi Mashhadi commented:
Unauthorized miners are the main culprits behind the
power outages in recent months. We would have had 80% less blackouts if
miners had halted their activities.
Subsidized Electricity Rates Entice Miners to Operate Illegally
Iran recognized cryptocurrency mining as a legal industrial activity
in July 2019, introducing a licensing regime for companies operating in
the sector. Tavanir says 56 crypto mining farms authorized by the
Ministry of Industries currently consume 400 MW, but according to the
department’s website, permits had been issued to 30 companies as of June.
In May, the government in Tehran introduced a temporary ban on cryptocurrency mining to deal with the power shortages. In late August, Tavanir announced
the restrictions will be removed on Sept. 22. The utility expects
electricity demand across the country to decrease by the end of summer,
allowing licensed digital currency miners to restart their operations.
However, the electricity tariff for authorized entities has gone up
significantly over time. Since April, these miners are charged 16,574
rials ($0.39) per kilowatt-hour, four times the initial rate. Meanwhile,
the number of illegal mining facilities has increased rapidly as these
use subsidized electricity for households and other enterprises,
avoiding the much higher, export rates paid by registered miners.
According to the report, Iran has a total installed capacity of over
85,000 MW while the country’s actual electricity production is
approximately 60,000 MW. The difference is due to various factors
including losses as well as low water levels in the dams that have
affected the output of hydroelectric power stations.
source link: https://news.bitcoin.com/iranian-ministry-of-industries-denies-power-shortages-are-caused-by-illegal-crypto-miners/
