Home News Iran pauses electricity exports due to crypto mining and hot summer

Iran pauses electricity exports due to crypto mining and hot summer

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Iran, amid ongoing power cuts across the country, has decided to import power from Armenia, Azerbaijan and Turkmenistan. This was announced on Wednesday by Mostafa Rajabi Mashhadi, the official representative of the Iranian electricity industry.

According to him, the export of energy almost completely stopped.

“Currently, electricity imported from Turkmenistan, Armenia and Azerbaijan … We export only about 50 megawatts to Afghanistan”, he said.

The country took this step in order to avoid problems with electricity supply.

Massive power outages

Earlier, Iranian media reported about a power outage at two power plants with a capacity of 1,000 megawatts. All over the country, power outages occur in government departments, residential and industrial facilities. In particular, last weekend in Iran there were massive power outages. It is possible that this could happen again in the first half of the week. The country’s authorities have asked citizens to reduce their electricity consumption as much as possible, especially in the afternoon.

In addition, the Ministry of Energy ordered some of the country’s industrial enterprises to stop working for the next two weeks. In order to save electricity and prevent possible accidents. Also, the ministry received powers from the president to prohibit industrial enterprises from using more than 10% of their normal electricity consumption. Note that these measures have already affected steel producers and cement plants.

Iranian First Vice President Eshaq Jahangiri called on all licensed miners in the country to stop working due to the ongoing energy crisis. He said in a meeting with officials from the Department of Energy that the restrictions on electricity consumption for cryptocurrency miners are likely to remain until early August.

Recall that in May, the President of Iran approved a ban on the mining of cryptocurrencies until September 22. As mining overloads the country’s energy networks. However, Iran’s Ministry of Industry and Trade recently authorized the operation of thirty mining enterprises in the country.

As a reminder, Iran made mining legal in 2019 to license and regulate miners domestically. Later, however, a surge in unlicensed activity began. Note that at the moment the Iranian authorities have confiscated 196,233 unauthorized devices for generating cryptocurrency.

Causes of the problem with electricity

The authorities attribute the problems with the supply of electricity to increased demand, especially from illegal cryptocurrency miners, as well as to abnormally high temperatures and drought, due to which the country lost most of its hydroelectric capacity. In addition, experts believe that the problems with electricity in the country also provoked by the embargo, imposed by Western countries, which suspended the allocation of loans to Iran for 9 billion euros for the construction of power plants and the development of power grids.

Earlier, the Iranian company TAVANIR reported that the daily production of electricity in the country is 54 thousand megawatts, and its consumption has increased to 65 thousand megawatts due to the summer heat. In order to close the gap between production and consumption, electricity has to be cut off, the company said.

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