Crypto Tech

Iran to utilize power plants for mining Bitcoin

Power plants have been approved to mine cryptocurrencies such as Bitcoin but at a limitation level. They cannot take advantage of subsidies.

Authorities of Iran have made it possible to use industrial-scale power plants to operate as Bitcoin miners. According to the Islamic Republic News Agency (IRNA), Deputy Managing Director of Iran’s Power Generation, Transmission and Distribution Management, Mostafa Rajabi Mashhadi said that power plants can now be used and operate as a mining facility of cryptocurrencies such as Bitcoin. So long as the said miners comply with approved tariffs and need to have the necessary licenses to operate.

He also said that any power plant with the same venture could not use subsidized fuel for mining operations. According to the energy spokesman: “Now we’re in a situation where the supply of electricity is of great importance to the public. We will not allow anyone to misuse tariffs provided for the agricultural and industrial sectors to produce Bitcoin while it’s worth more than $9,000.”

Back in January, the Ministry of Industries, Mining, and Trade have issued over 1,000 licenses for crypto mining. This is since the government has given authority to the industrial activity of mining in July 2019.

The spokesman of IRNA mentioned that 14 crypto miners requested more than 300 megawatts (MW) of power, going to cost usage across the usage of three provinces in the country.

The tariff for crypto miners located in Iran will depend on market factors like fuel prices. Since mining requires a lot of power and the country’s electricity is very cheap, it is beneficial for the miners.

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