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Iranian Ministry Rebuffs Allegations Blaming Crypto Miners for Power Shortages

cryptoknowmics.com 02 September 2021 12:30, UTC

Iranian Ministry of Industries has rejected allegations that blame illegal crypto miners for ongoing power shortages in the country. According to the Way2Pay website, an official from the ministry said that state power supplier Tavanir had exaggerated the role of cryptocurrency mining in electricity issues plaguing the country.

Iranian Ministry Rejects Claims Criticizing Crypto Miners for Power Shortages

As Iran gears up to lift the dreaded ban on cryptocurrency mining, the country’s Industries ministry has come forward to defend miners from criticisms leveled by state power distributor Tavanir. The ministry’s Director of Investment and Planning, Alireza, Hadi said recently that Tavanir had overestimated miners’ consumption of electricity.

“Figures announced by Tavanir seem to be highly exaggerated. The consumption of illegal miners is considerably lower than the 2,000 megawatts estimated by the utility,” he stated.

Hadi noted that the amount quoted by Tavanir could supposedly power 3 million units of mining equipment.

For its part, the Iran Power Generation, Distribution, and Transmission Company (Tavanir) maintained that illegal miners are still siphoning off that amount despite the closure of 5,000 mining facilities.

Iran had ordered the suspension of power supply to mining operations in May after a rainfall deficit and an unusually hot summer sent the demand for electricity shooting upwards. Back then, Tavanir had pinned the blame for power shortages on crypto mining. Recently, a spokesman for the company reiterated that stance:

“Unauthorized miners are the main culprits behind the power outages in recent months. We would have had 80% less blackouts if miners had halted their activities.”

Iran’s Modest Approach to Mining Regulations

Unlike China which has banned crypto mining in its entirety, Iran has a followed a balanced approach to regulating the industry. The country has curated a list of legitimate miners who are charged 16,574 rials or $0.39 per kilowatt-hour for their operations. While this price is four times the initial cost, tariffs are often reduced when grids are not pressurized.

Under former president Hassan Rouhani, the Iranian government was also mulling a legal framework to monitor crypto trading. However, following his departure, the country’s Securities and Exchange Organization (SEO) indicated that it might look into digital assets if the central bank decides to regulate them.

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