The Energy Ministry of Russia proposes power shut-offs for crypto miners to prioritize energy stability during shortages.
Russia’s New Energy Approach to Bitcoin Mining
The Russian Energy Ministry is addressing concerns about the energy demand from Bitcoin miners. They propose shutting off miners during power shortages.
Crypto Miners Utilize Surplus Power
Despite potential shut-offs, the ministry allows miners to use surplus power during low-demand periods. Yevgeny Grabchak confirmed that miners could access energy when available, as they are now classified as a unique category of consumers.
Relocating to Energy-Rich Regions
Deputy Minister Grabchak suggested that miners should consider relocating to areas with fewer energy demands. Southern Russia and Siberia are key mining regions, but the government urges miners to move to energy-rich zones like Perm and Veliky Novgorod.
Technological Solutions to Limit Energy Use
To address the power consumption issue, the ministry is exploring automatic IT solutions for limiting energy use. These measures would allow miners to control their energy consumption during peak periods.
Putin’s Endorsement of Industrial Crypto Mining
President Vladimir Putin recently supported industrial crypto mining but stressed the need to prevent power shortages. This follows grid issues in regions like Irkutsk, known for high Bitcoin mining activity.
Miners Shifting Away from Southern Russia
Many Bitcoin miners are moving their operations to energy-abundant regions. For example, Perm completed a 440-square-meter mining facility, while Gazprom launched a subsidiary in Veliky Novgorod, constructing a 500-rig mining farm.
New Data Centers in Russia’s Northeast
The Komi region plans to build 15 new crypto mining data centers in collaboration with private-sector miners. The first centers will be constructed in Mikun and Sindor.
Conclusion: Crypto Mining Amid Energy Constraints
As Russia’s Bitcoin mining industry grows, the government balances crypto expansion with energy stability. Miners face restrictions during shortages but can capitalize on surplus power when available. The focus now shifts to relocating miners to energy-rich areas, ensuring sustainable development in crypto mining.
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