Business And Markets

Cryptominers Could Use Renewable Energy

The Energy Ministry is planning to promote renewable energy for mining cryptocurrencies.

"Allowing cryptominers to use power from renewable sources can help develop the renewables sector," Mohammad Satkin, deputy minister of energy and managing director of the Renewable Energy and Energy Efficiency Organization (Satba), said.
In July 2019 the government said it would recognize crypto mining as a legal industry. That was welcomed by miners, but later they claimed that the electricity tariffs were too high and went underground with their business to deceive the utilities. 
The Energy Ministry said electricity bills for miners will be based on average power export rates. Miners are charged 4,800 rials for one kilowatt-hour that is half the electricity export rate in autumn, winter and spring. 
However, billings are planned to be based on 19,300 rials/kw, twice the price for exported electricity in summer (June to Sept). So far 24 cryptomining units using 310 MW have permission to operate.
In 2019 the ministry called authorized crypto miners to set up their own renewable energy at farm levels, allowing miners to use the national grid as backup when renewable output was insufficient.
Satba said that it would purchase the excess electricity output from authorized miners who have their own renewable energy farms.
Iran's installed power capacity is 84,000 megawatts, of which 840 MW comes from renewable sources including solar, wind, small-scale hydroelectric and waste-to-energy power plants and biomass.
There are more than 115 large solar farms in Iran and 3,500 smaller installations in cities and villages. Over 2,500 rooftop photovoltaic power units are to be set up next year mainly in deprived rural areas.
More than 80% of Iran’s electricity demand comes from thermal power that use fossil fuels. With the ongoing projects renewable output is expected to reach 1,000 MW by 2022.
Caption: In 2019 the Energy Ministry called authorized crypto miners to set up their own renewable energy farms.

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