Permission for cryptomining in Iran will henceforth be given only to miners using renewable energy, the Ministry of Industries, Mining and Trade said on Wednesday.
Authorized miners can resume their activities from March 6 only if they use renewable power. Besides, new investors can apply for starting a cryptomining business on the condition that they use renewables. Way2pay website reported.
From next week applicants must present certification from the Renewable Energy and Energy Efficiency Organization (SATBA) when applying for a crypto farm license.
The ministry added that using renewables is a prerequisite for renewing a mining license. "Permission for farms that make use of non-renewable power will not be renewed."
In July 2019 the government said it would accept cryptomining as a legal industry. Miners were required to acquire license from the Ministry of Industries and pay their electricity bills based on export rates.
The ministry has issued license for 30 cryptomining units, according to reports published on the ministry website. Semnan Province accounts for the largest number with six licensed crypto farms. Alborz Province has four followed by Mazandaran, East Azarbaijan and Zanjan provinces.
Miners pay their electricity bills based on power export tariffs. In April the Energy Ministry revised regulations for cryptomining as per which 16,574 rials is charged for one kilowatt-hour
Cryptominers have often been blamed for power shortages that fuel public frustration in summer when the lights are out despite the fact that the share of legal miners in the total electricity consumption was and is negligible.
Illegal miners reportedly use almost 2,000-3,000 MW a day or half the total daily consumption in Tehran city that is home to nine million people.
Authorized miners face hurdles including high power rates, contracts with power plants and suspensions imposed at the wish and whim of regulatory bodies.
Miners pay their electricity bills based on power export tariffs. In April the Energy Ministry revised regulations for cryptomining as per which 16,574 rials is charged for one kilowatt-hour.
Tariffs are cut by half when household consumption is low and the grid is not under pressure as is the case in summer.
Rates double during restrictions like when power plants do not receive enough feedstock or undergo routine maintenance.
When the power supply was hit last summer, Tavanir started shutting illegal cryptomining centers to curb blackouts.
Last May the former government ordered a blanket ban on all cryptomining until the end of summer. Legal miners were allowed to resume operations in the fall, though their operations were interrupted again.
In December miners were again ordered to suspend their activities to prevent possible blackouts in winter.
As per rules legal miners can enter into contracts with renewable power plants at negotiable terms and rates without the intervention of the government.
