Russia Explores Dedicated Crypto Mining Power Plants to Manage Energy Demands
Russia is exploring dedicated crypto mining power plants to manage the heavy energy demands of cryptocurrency operations. The proposal, led by Aisen Nikolaev, head of the Republic of Sakha and chief of the State Council Commission on Energy, aims to isolate crypto mining activities from public grids, following instances of excessive electricity consumption and capacity shortages.
Unchecked crypto mining has led to power quality issues and capacity shortages, particularly in regions with limited energy reserves. Authorities have discovered cases of misrepresentation, such as a facility in Dagestan camouflaged as a greenhouse to exploit subsidized energy tariffs. To address this, Russia's Deputy Prime Minister Yuri Trutnev suggested redirecting surplus power in the Far East to support crypto mining, utilizing excess energy more efficiently.
The government, involving the Ministry of Energy and regional authorities, is planning to have regions build special power plants dedicated to crypto-mining, with no access to public grids. This initiative aims to separate high energy consumption peaks from public grids, ensuring stable power supply for local businesses and residents.
The State Council Commission on Energy is currently considering the proposal to build dedicated crypto mining power plants. If approved, this move could help manage the energy demands of crypto mining, prevent power quality issues, and ensure efficient use of surplus energy in Russia.
