The Energy Ministry has revised crypto mining regulations to help ease miners' access to renewable power.
As per a decree, miners are no more obliged to use on-site power plants and can buy renewable energy from across the country via the national grid, Bargqnews reported.
Miners will not be charged grid transit fees for using the output of renewable power plants located in other regions of the country, the ministry said.
Mohammad Khodadadi, an official with the Iran Power Generation, Transmission and Distribution Company, says so far miners could only enter into contracts with renewable power plants located in the same province.
"The new measure is supportive of legal crypto farms, as power will be supplied without disruption," he said. "We are firm in taking measures to foster the use of renewables by legal cryptominers."
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.
Authorized miners enter into contracts with renewable power plants at negotiable terms and rates without the intervention of the government.
Back in March, it was announced that permission for cryptomining will be given only to those using renewable energy. “Newcomers can apply for cryptomining business on the condition that they use renewables,” the Ministry of Industry, Mining and Trade said.
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.
Authorized miners face hurdles including high power tariffs, contracting issues with power plants and suspensions imposed at the wish and whim of regulatory bodies.
Miners pay electricity bills based on power export tariffs. In April the Energy Ministry revised rules for cryptomining charging 16,574 rials for one kilowatt-hour.
However, these tariffs are cut by half when household consumption is low and the grid is not under pressure as in summertime.
Rates double during restrictions like when power plants do not receive enough feedstock or undergo routine maintenance.
Currently, 900 MW of electricity is produced through renewable sources, which barely account fort 1% of the total power production capacity in the country (85,000 MW).
Investment by private firms in the renewable sector is said to be near $1.1 billion, mostly in solar, and governments have encouraged private businesses to play an effective role in this key sector.
