Armenia To Host Crypto Mining Farms – Armenia intends to allow bitcoin miners to open a store in a decommissioned thermal power plant. The TPP will be decommissioned, and the government plans to lease it to industrial firms, particularly mining firms.
The Hrazdan TPP’s technology has been judged inefficient and antiquated, which results in high-cost electricity, and Armenian officials have made a decision to shut it down in the near future.
Its infrastructure and buildings, such as gas pipes, water, and power lines will be sold to more profitable companies.
The concept of renting out the old thermal station was approved during the meeting of the Commission for Regulation of Public Services on Wednesday, according to Sputnik Armenia.
According to the news outlet, a company that manufactures refrigeration systems has already negotiated for the relocation of portion of its production to the TPP.
Ecos, a free economic zone built in a different part of the facility, is now active. For individuals concerned in the extraction of digital currencies, crypto farms will be permitted to establish shop in this location.
Armenia passed legislation making crypto mining legal in 2018.
Even when the Hrazdan TPP is dismantled, the mining facilities would have ample electrical energy. The Russian firm Gazprom built Hrazdan-5, a new thermal power plant with four energy generating units, nearby.
Renco, an Italian enterprise, and Siemens, a German corporation, completed another TPP in November 2021.
Today, Armenia has 3 modern thermal power plants, including the state-owned Yerevan TPP. The electricity they produce is expensive than that provided by the Armenian nuclear power station and hydroelectric power plants west of the capital city, according to the report.
On the other hand, the little Caucasus country sells around 75% of its electricity to Iran, that supplies Armenia with inexpensive natural gas for power generation.
This relationship will be increased with the construction of a new transmission line between Islamic Republic and Armenia in 2023.
In Iran, cryptocurrency mining has grown in popularity, when the country recognize it as a lawful economic activity in 2019.
The sector’s energy requirements have risen as well, and both unlicensed and licensed miners were blamed during the past year for the country’s growing power shortfall.
In May, Hassan Rouhani, then-President of Iran, issued a temporary ban on crypto mining, claiming increasing demand and insufficient electricity owing to excessive heat and drought.
The restrictions were lifted in September as electricity demand decreased owing to the cooler weather, but they were reinstalled in December to avoid winter disruptions.