Iran Announces New Energy Regulations for Cryptocurrency Miners
NEWS
November 14  |  2 min read

Iran Finalises Energy Tariffs for Miners and Offers Reward for Reporting Illegal Mining

The COIN360 Editorial Team

Iran’s Energy Ministry representative, Mostafa Rajabi, detailed new government regulations on power usage and its prices for mining purposes and announced a reward program for reporting illegal mining during the interview to local news outlet IRIB News on November 13.

According to new regulations, miners are banned from using the national grid during peak hours of consumption to reduce pressure on Iran’s grid system. Rajabi added that, on average, the total amount of peak hours is 300 per year.

Rajabi further specified that in the eight cold months, the price for miners can be around $0.04/KWh, and in the four warm months – around $0.16/KWh due to increased consumption among populations. The average export price will be used as a baseline for calculating the exact tariff.

Electricity in Iran is among the cheapest in the world due to the subsidies system. Until the new regulations, Iranian miners took advantage of subsidized power rates or even used energy for free in mosques. According to news agency Mehr, mining one Bitcoin cost approximately $2,500.

The Ministry spokesperson also detailed that any reports on illegal mining would be rewarded up to 20 percent of the recovery of the damage to the national grid caused by illegal mining.

Additionally, Mostafa Rajabi promised incentives to miners for setting up independent power plants, and a back-up from the national grid for renewable energy power plants.

These measures are coming in response to increasing pressure on national grids reported this summer. For example, in June, Homayoun Haeri, deputy minister for electricity and energy at Iran’s Ministry of Power blamed miners for taking advantage of the nation’s subsidized power rates and 7% surge in energy consumption.