Iran to shut down crypto mining centers during peak energy consumption hours

The Iranian government has recently decided to pull the plug on operations of cryptocurrency mining farms during times of peak power consumption and despite admitting illegal crypto miners utilize much more energy than them, the recent regulatory act targets licensed industry facilities.

Based on official data, up to 300 megawatts of electricity are leveraged by authorized digital currency miners in the Islamic Republic.

With the latest crypto-related regulation the government of Iran wants to impose, the amount of power can be saved in order to maintain balance and stability of the country’s electricity network, according to the Iranian Ministry of Energy.

Unlicensed crypto mining woes for the Islamic nation

On the other hand, unlicensed crypto mining centers operating on Iranian soil are believed to consume more than 2,000 megawatts of electricity. The government considers these illegal, pointing out such centers, most of the time, are not connected to the power grid properly, overloading transformers and causing other infrastructure damages.

The illegal crypto miners are to be blamed for the blackouts that have been happening in Iran as well as for the fluctuations in the supply of electricity. Officials from the Iranian Ministry of Energy have warned people who mine digital currencies using household electricity and called them to shut down their equipment immediately or otherwise suffer consequences such as hefty fines and confiscation of their property.

Crypto mining causing imbalance

State-owned power utility Tavanir recently revealed the country is staring at a 5,000-megawatt daily electricity shortage, with Chief Executive Officer Mohammad Hassan Motevalizadeh listing cryptocurrency mining among several factors causing the imbalance to the system.

Meanwhile, low rainfall recorded in the country this year resulted in the need for irrigation and suppressed hydropower generation. High temperatures have also pushed household electricity consumption up, adding more woes to Iran’s apparent energy crisis.

 

Image courtesy of Cointelegraph News/YouTube

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