Russia’s energy minister has admitted that increased power consumption in the crypto mining sector may require the construction of new power plants in Siberia.Residential demand continues to grow
Russian Officials Think New Energy Infrastructure, Power Generation Capabilities For Crypto Mining Regions
Russian Energy Minister Nikolai Shulginov is aware of increased demand for electricity from cryptocurrency miners in parts of Siberia where the industry is expanding. Additional power generation capacity may be needed to meet their needs, he noted, citing local media and cryptocurrency news outlets.
Although Shulginov did not disclose specific plans, he said Russian authorities in these regions were considering further development of the energy networks used by mining companies, as well as the construction of more power plants. According to Bits.media, power grids in the Republic of Khakassia and Irkutsk province are currently under maximum load.
“The Energy Department’s position has always been based on the need to create working conditions for mining,” the senior government official stressed. He also pointed out that the population’s consumption of electricity is increasing as well, which can also damage the grid.
“As for industrial mining, it is growing mainly in areas with low tariffs. Consumption is growing significantly in these areas, and this must be taken into account,” said Shulginov on Russia-24 TV channel and commented in an interview with and elaborated on:
Probably won’t go on without building a generation [capacities] Southeastern part of Siberia’s unified energy system.
Energy-rich Irkutsk keeps electricity prices low for cryptocurrency miners
A country with abundant low-cost energy resources and a cool climate, cryptocurrency mining is growing in Russia, with many common Russians mining as a profitable business activity and in basements and garages. It is used as an additional source of income for humans. According to a study released in October, bitcoin mining revenue in Russia was I grew up 18 times in four years before markets and sanctions strike it this year.
Home mining has caused breakdowns and power outages in places such as: Irkutsk, is called the mining capital of Russia and offers the lowest electricity tariffs in the country. A proposal to introduce a differentiated tariff that would raise energy costs for amateur miners to limit consumption was supported by the Ministry of Energy but was ultimately rejected by local governments, with the exception of the Kemerovo region.
Deputy Energy Minister Pavel Snikkars in early December Said We estimate that by 2022, the industry’s share of total electricity consumption in Russia could double.His department and the Bank of Russia Supported A bill to regulate cryptocurrency mining, but lawmakers delayed Adoption of the bill in 2023.
Do you think the Russian government will take steps to secure energy supplies for cryptocurrency miners? Let us know in the comments section below.
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