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Power Consumption to Reach All-Time High Before Summer

Electricity consumption on June 9 surpassed 57,500 MW, which figure was 51,500 MW during the same period of last year

A rise in temperature, which has been predicted for the coming days, may lead to a surge in power consumption and hit an unprecedented record of 60,000 megawatts, the Energy Ministry’s spokesman for the power department said.

“According to the weather forecasts, up until the end of the week [June 18], we will see an average increase of 1.4 degrees centigrade throughout the country. The rise in some provinces will even reach 5 degrees, which will, in turn, lead to higher power consumption,” IRNA also quoted Mostafa Rajabi Mashhadi as saying.

Electricity consumption on June 9 surpassed 57,500 MW while during the same period of last year, the figure was 51,500 MW.

Last July, electricity consumption in Iran exceeded 58,000 MW, registering the highest power consumption recorded in the country. 

At present, higher electricity consumption is expected, even though summer has not started. The rise in consumption has also led to sporadic power outages in many parts of the country.

Power cuts in the peak summer months are not uncommon in Iran but they happen earlier this year.

The main reason behind the outages is unusually low rainfall that has impacted hydroelectricity production. Precipitation is down 43% in the current water year (started September 2020) compared to the country’s 50-year average. As a result, less power is generated by the hydroelectric power plants.

 

 

Crypto Mining

Cryptocurrency mining is also a key factor in boosting electricity demand this year. Vast amounts of electricity are used through the so-called blockchain process to generate valuable digital assets like bitcoin.

Thousands of illegal mining rigs have been confiscated in the country so far. And the government has banned all cryptocurrency mining, including legal ones, until the end of summer.

Authorities have confiscated 3,000 units of mining hardware in just one week as part of a push to curb illegal crypto mining amid power shortages and blackouts. In a single year, Iranian law-enforcement forces have shut down over 180 crypto farms in Tehran Province alone.

Another 600 mining rigs have been detected in Kerman Province, said the Iran Power Generation, Distribution and Transmission Company. Illegal mining farms have also been identified in the provinces of Khuzestan, Mazandaran, Qom and Bushehr.

High cryptocurrency prices and subsidized electrical power have lured many Iranians toward crypto mining over the past year. And while the government has authorized a number of entities to legally mint digital currencies in the country, these account for around 300 megawatts of daily electricity consumption. 

According to Iranian government estimates, illegal mining operations burn around 2,000 MW per day.

“Home subscribers can prevent possible blackouts by following three simple solutions: Operating evaporative coolers at low speed, setting the temperature of split air-conditioners to 25 degrees and avoid using appliances with high electricity consumption during peak hours [13-18 p.m.],” Rajabi said.

“In order to reduce electricity supply restrictions, electricity imports from Azerbaijan started on Thursday,” he added.

Rajabi said currently, 73 MW of electricity are injected from this transmission line into Iran's national power grid but it can be increased to 130 MW during peak hours.