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According to a crucial announcement made by Iran’s Thermal Power Plant Holding Company (TPPH) Iran has prepared groundwork to use the energy of three power plants solely for the purpose of mining Bitcoin. The local news outlet yet quite a followed one, Tehran Times reported that the different power plans in Iran get benefits and subsidies from the government on their fuel supplies. But up to July, the government had barred them from using the energy they produced to mine cryptocurrencies.
Another crypto publication that caters to worldwide markets reported back in July that Iran has officially given the legal sanction for cryptocurrency mining for entities. It has legalized cryptocurrency mining for those entities which are approved by Iran’s Ministry of Industry, Mine, and Trade. But despite this one step, there was still a stoppage for cryptocurrency payments.
Power entities might not be able to get their share in the subsidies related to the mining of crypto assets yet TPPH has gained inwards into the crypto mining space. It is looking to further expand its hold in the industry. In order to set their names in the industry, they also have to remove any maladaptive mandates and adhere to the special tariffs for crypto mining.
Mohsen Tarztalab, managing director of the firm, said:
“The necessary equipment has been installed in three power plants of Ramin, Neka, and Shahid Montazeri, and the auction documents will be uploaded on the SetadIran.ir website in the near future.”
The Bitcoin Energy Consumption Index provides the latest estimate of the total energy consumption of the Bitcoin network. Below is the Bitcoin Energy Consumption Index Chart that has captured the essence of energy consumption of mining activities for Bitcoin.
Source: Digiconomist
Despite a drop midway between Jan and May, we see increasing Bitcoin mining activity from Mid June onwards.
The CEO of the firm further added that by deciding to sell electricity to Bitcoin miners, it will provide a definite source of income for the firm. It will create a new revenue source and also help them increase their presence in the industry. Iran’s electricity industry has been vying for stable sources of income for quite some time now and this could be the stability they have been looking for.
He also mentions further,
“constant price hikes and the obligation for supplying electricity with stable prices to subscribers have caused a large gap between revenues and expenditures.”
But with this new opportunity coming its way, the income realized from bitcoin mining could help fill in the gap. The three Iranian power plant will utilize their expansion turbines in order to enable BTC mining. It will not connect it to the national grid which is involved in power generation for other uses. Iran’s open attitude to looking at newer opportunities that will give it’s economy a boost even for the future will surely benefit the country’s growth prospects. Presently the country is dealing with some poor economic perspectives and receiving sanctions from different countries to stay afloat.