The construction of new electricity infrastructure may be required to satisfy miner’s needs, according to the Russian Energy Minister. Siberian, Russia’s regional administrators have refused to raise fees, but residential energy demands are continuing to climb. Cryptocurrency production is now possible from home.
Russian Government Considering New Energy Sources For Crypto-Mining Areas
The Russian Energy Minister Nikolay Shulginov has acknowledged the need for extra electricity to meet the requirements of cryptocurrency miners in certain areas of the country. Siberia has experienced significant growth in the sector recently. The minister did not go into any specifics, but made it clear that plans are in the works. Regional authorities are exploring the feasibility of increasing power grids used by mining companies and the building of extra power plants.
“The Energy Ministry has always been committed to creating conditions for mining,” the official said. The other concern is that electricity consumption for residents has gone up, leading to problems with the distribution networks.
Most likely, it won’t be possible to get by without constructing new power generating capacities in the southeastern part of the unified energy system in Siberia.
Energy-Rich Irkutsk Keeps Electricity Rates Low For Crypto Miners
Cryptocurrency mining has been increasing in Russia due to the nation’s plentiful energy resources and favorable climate. It has become a viable source of income for many people, with some successfully running operations from their homes. A survey conducted in October revealed that Bitcoin mining is a profitable business in Russia, with income having grown 18x in four years before the economic downturn and sanctions.
Mining has been linked to recent blackouts in places like Irkutsk. The Energy Ministry proposed a solution to reduce electricity usage among hobby miners by introducing tiered tariffs, but the idea was rejected by regional authorities apart from the Kemerovo region. In late December, Deputy Energy Minister Pavel Snikkars estimated that by 2022, the industry could account for a double-digit share of Russia’s total energy consumption.
The bill was endorsed by many, yet lawmakers postponed its approval. It is expected to be adopted by 2023.
Do You think the Russian government will take measures to ensure cryptocurrency miners have enough power? Leave a comment below.
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