Crypto Miners

Iranian Ministry of Industries Refuses that Power Shortages are Because of Prohibited Crypto Miners

Iran’s Ministry of Industries, Mining and Trade has rejected claims blaming prohibited cryptocurrency miners for the continued electricity shortages within the country. The department believes the state-run utility company, Tavanir, has overestimated their role within 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 prohibited crypto miners are for the most part to blame for the continued power shortages within the Islamic Republic. Quoted by Way2pay and also the English-language business daily Financial Tribune, the ministry’s Director of Investment and designing Alireza Hadi stated:

“Figures proclaimed by Tavanir appear to be extremely exaggerated. The consumption of illegal minors is significantly less than the 2,000 megawatts calculated by the utility.”

According to Hadi, this quantity of voltage would equal the facility usage of three million items of mining hardware. Tavanir insists, however, that unauthorized miners are  still intensely abundant, despite having stopped working over 5,000 prohibited mining facilities across Asian nations. It jointly confiscates quite 213,000 mining devices with a capability of 850 MW.

The outstandingly hot summer, following insufficient precipitation earlier this year, resulted in a heavy increase in power demand for electricity in Iranian cities. Tavanir listed cryptocurrency mining as the main reasons for the nationwide shortages. Last week, the company’s speaker  Rajabi Mashhadi commented:

“Unauthorized miners are the most culprits behind the facility outages in recent months. we’d have had 80% less blackouts if miners had halted their activities.”

Subsidized Electricity Rates provoke Miners to control lawlessly

Iran recognized cryptocurrency mining as a legal industrial activity in July 2019, introducing a licensing regime for firms in operation within the sector. Tavanir says 56 crypto mining farms licensed by the Ministry of Industries presently consume 400 MW, however consistent with the department’s web site, permits had been issued to 30 firms as of June month.

In May, the government in the capital of Iran introduced a short lived ban on cryptocurrency mining to agitate the facility shortages. In late August, Tavanir proclaimed the restrictions were removed on Sept. 22. The utility expects electricity demand across the country to decrease by the end of summer, permitting licensed digital currency miners to restart their operations.

However, the electricity tariff for licensed entities has gone up considerably over time. Since April, these miners have charged 16,574 rials ($0.39) per kilowatt-hour, fourfold the initial rate. Meanwhile, the amount of prohibited mining facilities has enhanced pace as these use sponsored electricity for households and alternative enterprises, avoiding the abundant higher export rates paid by registered miners.

According to the report, Iran has a total put in capability of over 85,000 MW whereas the country’s actual electricity production is around 60,000 MW. The distinction is because of varied factors as well as losses similarly as low tide levels within the dams that have affected the output of electricity power stations.