Iranian authorities plan to shut down oil extraction facilities crypto under License as electricity consumption in the country reaches an all-time high. The Islamic Republic’s Ministry of Energy said the mines would be without power on Wednesday.
The activities of legal minors in Iran stopped again.
reported by him Tehran TimesMustafa, spokesman for the Ministry of Energy rajabi Mashadi, the news came out. Soon, minor authorized companies will be forced to disconnect their energy-intensive equipment. The new decision will come into force June 22.
He noted that the measure applies to 118 licensed mining operations currently operating in the Islamic Republic. Temporary restrictions will come after the country has accomplished a record 62,500 megawatts (MW) Of electricity This only during peak hours last week.
According to the local calendar, electricity demand is expected to exceed 63,000 megawatts for the week ending Friday. Department of Energy officials called the numbers significant and warned they would lead to limited power supply across the country.
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Iran’s low electricity cost draws miners’ interest
Tehran authorities legalized cryptocurrency mining as an industrial activity in 2019. Since then, dozens of companies have requested licenses from the Ministry of Industry to start mining the digital currency. This is to take advantage of low-cost energy provided by Iranian power plants.
Additionally, a growing number of Iranians are building mining facilities that use subsidized domestic electricity to extract. However, this further increases burden on Iran’s power generation industry. The latter faces serious problems due to lower than expected rainfall and increased demand due to hot weather. A report published in May showed that almost 7,000 illegal crypto farms had collapsed in Iran.
L’increase in electricity consumption in mines have been due to power shortages. So even licensed miners were ordered to close last summer. They were allowed to resume operations in September, but have they have asked again to suspend their activities in the face of growing power shortages during the cold winter months.
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