Iran Finalizes Electricity Rates for Crypto Miners

Source: Lianxiang Dabai

Iran’s Economic Commission has reached a final agreement on a tariff package for cryptocurrency miners, Iranian economic daily Financial Tribune reported July 21.

According to the report, Iranian Energy Minister Homayoon Ha'eri announced that while the tariff proposal has been finalized, it is awaiting approval from the Iranian cabinet.

While Homayoon Ha'eri did not elaborate on the specific pricing proposal, he said the price depends on market factors such as fuel prices in the Persian Gulf.

Ali Bakhshi, head of the Iran Electric Industry Syndicate, had previously proposed a price of $0.07 per kilowatt-hour for cryptocurrency miners. Electricity is currently very cheap in Iran due to government subsidies; it currently costs $0.05 per kilowatt-hour, and is even cheaper for the agricultural and industrial sectors.

To put these prices into context, India’s Energy Ministry spokesperson Mostafa Rajabi Mashhadi previously said that it takes about $1,400 in state subsidies to produce one Bitcoin (BTC).

The Financial Tribune reported that mining one Bitcoin for a year reportedly consumes as much electricity as 24 buildings in Tehran.

Today’s news follows an announcement by the Central Bank of Iran (CBI), with the bank’s governor, Abdol Hemmati, claiming that the CBI plans to authorize cryptocurrency mining.

Similar to statements made today by Energy Minister Homayoon Ha’eri, Hemmati said a planned law would require crypto mining in Iran to abide by export electricity prices, rather than allowing miners to use the heavily subsidized domestic energy grid.

Also today, Jamal Arounaghi, deputy director of the Customs Administration of the Islamic Republic of Iran, announced that the agency has not yet issued a license to import cryptocurrency mining equipment. While there are plans for tariffs, the final decision on the license is still pending government approval.