• Sun. Jul 21st, 2024

Iran Modifies Rules To Allow Crypto Miners Use Green Energy

Jul 29, 2022

Iranian authorities have reviewed the existing laws on crypto miners in the country. The aim is to allow them to use renewable energy to power their equipment. 

Therefore, licensed crypto miners can now purchase power obtained from green sources at cheaper rates. Also, this would help ease the load on the country’s electricity.

Crypto Miners Can Now Use Green Energy To Power Mining Equipment

According to Bargqnews, the Ministry of Energy in Iran has modified certain laws on crypto mining activities. This is to allow the registered entities to source for renewable energy.

Before now, crypto miners were only allowed to use on-site energy generation capacities. The needed amendment will allow them to purchase power from renewable sources in the nation and the national grid.

According to Mohammad Khodadadi, an executive at the Tavanir (Iran Power Generation, Transmission and Distribution Company), a mining firm could only get power from renewable sources located in the same area.

Furthermore, the Financial Tribune stated that:

“The state will not charge Iranian crypto mining firms using sustainable energy the usual transmission fees when they use the nation’s electricity network.”

Meanwhile, the country has had power shortages during the dry and hot summers. Also, it occurs in the cold winter season.

Most residents, including the government, blamed BTC miners as the chief cause. This was due to their alleged high energy usage. 

Iran Ordered The Shutdown Of Mining Facilities 

Last year, the government ordered the shut down of even registered crypto mining stations several times. In 2022, the country’s electricity regulator, Tavanir, told crypto miners to cease mining activities until the summer ended. 

According to the Tavanir, the country was expecting huge electricity shortages due to high power consumption. This was because of the increased usage of cooling appliances in the state. 

However, the restriction received negative comments from the country’s cryptocurrency community. Many of them asked why the authority told only crypto miners to shut down and left other companies. 

Also, the utility company said it would impose severe sanctions on unlicensed crypto firms. It even raised the fine for illegal miners by 400%.

According to the country’s data, the government closed over 7,000 illegal crypto mining facilities in May. Such improvised facilities are powered using household power and is a major income for some citizens. 

Tavanir workers seized thousands of mining equipment during the raid on illegal crypto miners.

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