In a bid to support authorized cryptocurrency mining, Iran Power Generation, Distribution and Transmission Company (Tavanir) said it will cut up to 47% of electricity tariff for miners during the peak consumption periods.
Speaking to state TV, Mostafa Rajabi, a spokesman for the main utility in Iran, said the aim is to support legal mining centers during the four summer months during which electricity rates are usually set much higher for crypto miners.
"To be eligible for the incentives, the miners can take part or invest in Tavanir's recent efficiency plans such as the ongoing project to replace one million old (gas-powered) air conditioners with energy-efficient ACs," he said.
Miners can buy electricity either through the Energy Exchange or directly from power plants at 4,750 rials per kilowatt hour, he told the state-owned radio and TV broadcaster.
As per earlier announcements, miners are charged 4,800 rials for one kilowatt-hour that is half the electricity export rates in autumn, winter and spring. However, billings are planned to be based on 19,300 rials/kw, twice the price for exported electricity during summertime (June to Sept).
The project is estimated to cost $650 million, 65% of which will be put up by the government. Subscribers who want to replace their old air conditioners will pay the remaining 35% in 24-month installments payable through their electricity bills.
Rajabi did not say how the miners would benefit from joining the Tavanir initiative.
Averse to Legalization
Despite all attempts, legalizing cryptocurrency mining remains on paper. The Energy Ministry along with the Law Enforcement Forces, shut down several unauthorized mining farms.
This prompted the government to significantly raise power tariffs for crypto mining to 7 cents/kilowatt-hour, to address concerns over possible power outages in summer and indirect subsidies going into the pockets of undeserving crypto miners.
However, due to the higher tariffs, the measure has neither attracted investors nor discouraged illegal mining. "So far barely 14 authorized mining units are operating," Rajabi said. "There still are illegal miners taking undue advantage of the energy subsidies for their lucrative business."
Officials say 1,100 illegal mining centers have so far been identified but very many remain in business. In a recent move Tavanir said that it would reward whistleblowers who name and shame unauthorized miners.
Electricity tariffs in Iran are among the lowest in the world. Rajabi and other energy officials have not said why with all the advanced production, distribution and control systems used by Tavanir has it failed to round up all the unruly miners and set the record straight.
