Increased power consumption in crypto mining sector Russia’s Energy Minister has approved the construction of a new power plant in Siberia. Demand continues to grow in residential areas
Russian authorities consider new energy infrastructure, power generation capacity in crypto mining regions
Russian Energy Minister Nikolai Shulginov is aware of the growing demand for electricity from cryptocurrency miners in some regions of Siberia where the industry is expanding. Additional power generation capacity may be needed to meet their needs, he noted, cited by local media and cryptocurrency news outlets.
While not disclosing plans, Russian officials in those regions said they were considering further developing the energy networks used by mining companies and building more power plants. According to Bits.media, power grids in the Republic of Khakassia and Irkutsk province are currently under maximum load.
“The Department of Energy’s position has always been based on the need to create working conditions for mining,” a senior government official emphasized. He also pointed out that the population’s consumption of electricity is increasing as well, which can also damage the grid.
“Industrial mining is also growing, especially in areas with low tariffs. We are seeing significant consumption growth in these areas, which we need to take into account,” he said. In an interview with Russia 24 TV channel, Mr. Shulginov elaborated:
Go without construction of power generation [capacity] in the southeastern part of Siberia’s unified energy system.
Energy-rich Irkutsk for cryptocurrency miners
Cryptocurrency mining is expanding in Russia, which has abundant low-cost energy resources and a cool climate. It is a profitable business activity and as an additional source of income for many common Russians minting in their basements and garages. An 18-fold increase in the four years before sanctions hit this year.
In places such as Irkutsk, dubbed the mining capital of Russia, domestic mining causes breakdowns and power outages. 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 authorities, with the exception of the Kemerovo region.
In early December, Deputy Energy Minister Pavel Snikkars said that by 2022 the industry’s share of Russia’s total electricity consumption could double. The ministry and the Bank of Russia backed the bill aimed at regulation.
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