Russia Plans to Establish New Power Plants Amid Mining Surge

  • People are consuming more power, which might strain the system’s infrastructure.
  • Republic of Khakassia and the Irkutsk Oblast grids are under the most strain right now.

Nikolay Shulginov, Russia’s Minister of Energy, has acknowledged the growing demand for energy from cryptocurrency miners in certain regions of Siberia. Media agencies covering cryptocurrency said that he said that more power plants may be needed to accommodate demand.

Although Shulginov did not provide details. It is evident that the Russian authorities in these areas are thinking about expanding the energy networks utilized by mining corporations. And constructing new power plants. There are reports that the Republic of Khakassia and the Irkutsk Oblast grids are under the most strain right now.

Significant Consumption Growth

The government official highlighted that “the position of the Ministry of Energy has always been based on the need to create working conditions for mining.” He also pointed out that people are consuming more power, which might strain the system’s infrastructure.

Shulginov stated:

“As for industrial mining, it is also growing, mainly in regions where the tariff is low. In these regions, we are seeing significant consumption growth, which we must take into account.”

Due to Russia’s cheap electricity and relatively moderate temperature. Cryptocurrency mining has become more popular there. Both as a commercial enterprise and as a side hustle for many regular Russians. A report released in October found that bitcoin mining profits in Russia increased 18-fold over four years before being hammered by markets and sanctions this year.

Despite having some of the cheapest energy rates in the nation. Towns like Irkutsk, known as the mining capital of Russia, have experienced failures and blackouts due to people mining at home. The energy ministry supported a plan to establish differentiated rates. Which would have increased energy prices for hobbyist miners in order to curb use. 

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