Iran has decided to reduce the power supply to the country’s legal crypto mining machines. Arz Digital, a local news organization in the country, made the announcement. Rajabi Mashhadi, a spokesperson for Iran’s Ministry of Energy, stated that licensed crypto businesses will be disconnected from the electricity grid beginning in July and continuing until the conclusion of the regulation.
The new decision is in response to the possibility of an electrical shortfall in the country during the busy summer season. According to Mashhadi, the country’s 118 permitted mining facilities must cut off their electricity supply starting in July.
Iran witnessed an all-time high electricity consumption rate
- “Last week, the country’s electricity consumption recorded an all-time high of 62,500 megawatts (MW) during peak consumption, which is a significant figure. According to forecasts, this week’s consumption requirement will exceed 63,000 MW, which means we must limit electricity supply.”
The comments came after the country’s Ministry of Energy announced a meager 1.2 gigawatt (GW) increase in energy generating capacity in 2021. This was significantly less than the 3.5 GW increase expected, resulting in a power shortfall.
Due to international sanctions, Iran is unable to keep up with the electrical shortage. As a result, Iran finds itself in a scenario where it lacks the essential investment in electricity generation and natural gas production to keep up with its demand.
On the other hand, demand is increasing as a result of the country’s extremely low electricity rates. Iran’s average home power costs $0.005 per kilowatt-hour (kWh), which is a fraction of Iraq’s $0.024 per kWh and the US’ $0.159 per kWh.
According to Cambridge University, Iran contributes over 0.12% of the worldwide Bitcoin hash rate. As a result of the decision, the country will fall out of the top ten countries in terms of Bitcoin mining productivity.
