Iran Finalizes Electricity Pricing Scheme for Miners
Iranian Economic Commission has reportedly finalized a tariff scheme for crypto miners, according to a July 21 report from Iranian economic daily Financial Tribune.
Energy Minister Homayoon Ha’eri announced that, while the tariff scheme has been finalized, it is awaiting approval from the Cabinet of Iran — a governmental body consisting of various ministers and other officials chosen by the president.
Whil eMr. Ha’eri did not elaborate on the exact price scheme, he stated that the price is dependent on different market factors such as fuel prices or gas prices in the Persian Gulf.
Ali Bakhshi - the head of Iran Electrical Industry Syndicate - previously proposed a price of $0.07 per kwh for crypto miners. Iranian electricity is very cheap due to government subsidies; one kwh of electricity currently costs $0.05, with power being cheaper in the agricultural and industrial sectors.
The Energy Ministry spokesman - Mostafa Rajabi Mashhadi - previously stated that the production of a Bitcoin (BTC) uses about $1,400 in state subsidies.
The Financial Tribune reports that mining one Bitcoin reportedly consumes as much electricity as 24 buildings in Tehran do in one year.
Today’s news follows an announcement from the Central Bank of Iran (CBI), in which the banks governor Abdol Hemmati claimed that the CBI was planning to authorize cryptocurrency mining.
Similar to today’s statements from Energy Minister Ha’eri, Hemmati said that a planned law will require crypto mining in Iran to abide with the price of electricity for export, rather than allowing miners to use the heavily subsidized internal energy grid.