Unregulated Crypto Mining Strains Local Energy Supplies in Russia
Unregulated crypto mining in certain regions has sparked concern due to its impact on local energy supplies. The State Council Commission on Energy is now weighing proposals to address this issue.
In Dagestan, authorities recently discovered a crypto mining operation masquerading as a greenhouse, exploiting subsidized energy rates. This incident highlights the growing strain on local power grids, particularly in areas with limited energy reserves. The excessive electricity consumption from unchecked crypto mining has led to capacity shortages and declining power quality, affecting both businesses and residents.
Aisen Nikolaev, head of the Republic of Sakha and chief of the State Council Commission on Energy, has proposed a solution. He suggests constructing dedicated crypto mining power plants, isolating their energy use from public grids. This would help alleviate the pressure on local energy supplies. Meanwhile, Russia's Deputy Prime Minister Yuri Trutnev has recommended redirecting surplus power in the Far East to support cryptocurrency mining, aiming to utilize excess energy more efficiently.
The State Council Commission on Energy is exploring ways to manage the energy demands of crypto mining. Proposals include dedicated power plants and redirecting surplus energy. Regional governments with sufficient resources and regulatory control could also consider building independent crypto mining power plants.
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