Note on the country’s electricity extraction operator: Miners must move towards renewable energy

Mohammad Khodadadi Bohloli, Tavanir’s electricity supply manager, recently published a note on a draft bill to combat the illegal extraction of digital currencies, saying that the practical solution for continuing the operation of legal extraction centers is to use renewable energy.

According to digital currency and to Quoted According to Tavanir news website, Khodadadi stated in the memo that the Ministry of Energy has considered programs to attract investment in renewable power plants and will support those who work in this field. You can read the details of this note below.

Legal extraction centers are not a factor in fueling blackouts

According to the current laws and regulations of the country, the extraction of ciphers is not illegal in the country, provided that, first, the applicant obtains the necessary permits from the Ministry of Silence. Second, do not use subsidized electricity to extract ciphers. In fact, legal cryptocurrency mining centers are not the cause of blackouts; Because at peak consumption, their connection to the power grid is cut off. In addition, these centers do not use subsidized electricity and therefore do not exacerbate the imbalance in the electricity economy, which is one of the main causes of blackouts. What is a very serious threat to sustainable energy supply in this area is the illegal use of electricity, subsidized by industrial, agricultural, household and commercial tariffs to extract ciphers. The nature of this illegal act is energy smuggling, which in addition to damaging neighbors’ electrical appliances, causes blackouts in both the hot and cold seasons and violates the rights of other people.

In order to organize this challenge, it is necessary to act simultaneously in both positive and negative parts. On the positive side, we need to move towards diversifying the energy supply portfolio required by Ramzarz legal extraction centers, because relying solely on existing thermal power plants connected to the national grid to supply electricity to this group of applicants at all times of the year will lead to increased blackouts. The electricity industry as well as the gas industry are not easily able to build new capacity and infrastructure from their revenues due to subsidized and mandatory prices; Government assistance to these two industries from a place such as increasing the monetary base will also fuel inflation. Considering the above, imposing electricity demand for cryptocurrency extraction to the national grid in the hot four months of the year, when the electricity industry is facing the peak of electricity consumption, requires an increase in blackouts in the domestic, commercial and industrial sectors. In the cold four months of the year, due to increasing pressure on the country’s gas network, power plants do not have enough fuel and meeting the energy demand for the extraction of ciphers again requires more blackouts to domestic, commercial and industrial customers.

In these 8 months, when the existing thermal power plants are not able to supply electricity for the extraction of cryptocurrencies due to the pressure of electricity demand or lack of fuel, one of the practical solutions is to use renewable power plants or create any new energy source to the grid in hot days. The gas is not pressed in cold days, to provide the energy needed to extract the cryptocurrencies. The energy supplied by this method has a lower cost compared to the export price of electricity, is a common solution throughout the world, and guarantees a stable supply of electricity all year round for legal cryptocurrency mining centers. In this regard, the national electricity grid can provide smoothing services and continuity of electricity generation by the above sources as well as its transit. In order to attract investment in renewable power plants, in case the bilateral contract of renewable generator with the legal centers of Ramzarz extraction is terminated, the Ministry of Energy will guarantee the purchase of electricity of the renewable power plant or implement the support mechanisms that it has for other renewable power plants.

The above positive measures are only the first part of the policies related to the organization of Ramzarz extraction in the country, the implementation of which alone is not enough. It should be noted that due to the existence of electricity with low subsidy rates in the industrial, agricultural, domestic and commercial sectors, there are profitable incentives to abuse electricity or subsidized gas to extract ciphers, which is a very serious threat to sustainable energy supply in the country. In this regard, the law should provide for sufficient deterrent penalties for violators, which unfortunately do not exist in the current law. It is also necessary to record the specifications of all cryptocurrency mining equipment in the country, whether imported or domestically produced, in a transparent manner with a unique tracking code in the comprehensive trade system of the Ministry of Silence. This information, along with records of sales and purchases of miners in the country, must be available online to all relevant executive agencies, and any miner who has not received a unique tracking code from the system must be recorded as illegal equipment in accordance with the law.

In the new bill proposed to provide the energy required for the extraction of cryptocurrencies, both positive and negative axes are considered; On the one hand, it provides a platform for the legal activity of Ramzarz mining at a reasonable and competitive energy price without putting pressure on the electricity and gas network, and on the other hand, while increasing the transparency of the process of importing, producing, buying and selling Ramzarz mining devices, penalties Illegally increases the activity related to this field.

It is hoped that with the help of esteemed representatives in the Islamic Consultative Assembly and also the esteemed government, after the approval of the above cases, with the cooperation of private sector activists, we will see the organization of this area in the national interest.