Major Iranian Power Company to Sell Electricity to Crypto Miners

Iran is apparently becoming one of the major cryptocurrency mining hubs outside China. Favorable government regulations based on licensing rather than prohibition is seeing the country account for a larger share of the global Bitcoin mining hash rate distribution.

Selling Power to Crypto Miners

As Tehran Times reported on Sept. 21, Iran’s Thermal Power Plant Holding Company (TPPH) plans to sell excess electricity to crypto miners. TPPH, one of Iran’s major power companies, is reportedly ready to hold a tender for supplying power from three plants to mining farms. Iran has seen a significant increase in electricity output stemming from vast capital expenditure in power generation infrastructure. However, government mandate restricts power companies to stable price regimes which reportedly limits the profitability of these establishments. For Mohsen Tarztalab, the TPPH chief, selling electricity to Iranian crypto miners is a way accruing more revenue. However, the company will only sell electricity generated from non-fossil fuel sources like turbines which are not part of the firm’s supply to the national grid.

Iran Pushing for Crypto Mining Dominance

With crypto mining in Iran being predominantly fossil-fuel-based, TPPH’s move could see the emergence of renewable energy-based cryptocurrency mining in the country. Indeed, Iran’s overwhelming utilization of fossil fuels caused a significant reduction in the proportion of global crypto mining operations powered by clean energy in 2019. According to data from the Cambridge Bitcoin Electricity Consumption Index, Iran accounts for about 3.87% of the global Bitcoin hash rate distribution. This figure represents an almost 100% growth from September 2019 due largely to the country’s cheap electricity tariffs. Tehran’s positive stance towards crypto mining is also helping to incentivize more activity in the country. As previously reported by BeInCrypto, Iran’s President Hassan Rouhani called on the central bank to create a national cryptocurrency mining strategy. Iran’s government has also granted over 1,000 operating licenses to crypto miners. Power plants even have the go-ahead to utilize excess electricity supply for cryptocurrency mining.