Russia's Energy Ministry Seeks Power to Cut Off Crypto Miners from Power Grids
The Russian Ministry of Energy is seeking the authority to disconnect cryptocurrency miners from the power grids as Bitcoin miners continue to expand their operations. This news comes amid reports that Russian actors mined $3.5 billion worth of Bitcoin (BTC) last year.
Russia’s Energy Ministry: Miners Should Relocate to Other Regions
Deputy Energy Minister Yevgeny Grabchak suggested that energy providers should have the ability to disconnect miners "at any time" from the electricity supply. He also echoed earlier claims made by the ministry that excess power could soon be made available to miners.
"Miners are a new category of consumers. We are actively discussing them now. We do not always have peak power consumption, and there are often free capacities when the networks are not heavily loaded," Grabchak stated.
Russian Energy Minister Sergey Tsivilev, during a meeting with President Vladimir Putin, noted that miners should be prepared to move to parts of the country with surplus energy capacity.
Regional Mining Challenges
Irkutsk, Buryatia, and Transbaikalia are all known Bitcoin mining hotspots. In particular, Irkutsk has struggled with power supply issues, leading to regional crackdowns on illegal miners. Experts estimate that about a third of Russia’s crypto miners are operating in or around Irkutsk, consuming an average of 1,000 MW of electricity.
Automatic Power Cuts?
Grabchak also mentioned that the industry itself could choose to limit its power consumption manually or implement "automatic" IT solutions. He explained, "If there is no capacity shortage – as is the case most of the year – we can provide some consumers with excess capacities. But this is only possible if they limit their consumption. Alternatively, they can install automatic solutions to disconnect them from the grid."
Earlier this year, President Vladimir Putin approved industrial crypto mining, which led to the legalization of cryptocurrency mining in the country. However, Putin also tasked his government with finding ways to ensure that miners do not disrupt the power grid. This has been a significant concern in neighboring countries like Abkhazia and Kazakhstan.
"The uncontrolled rise in electricity consumption for cryptocurrency mining can lead to power shortages in certain regions. This has already been observed in Irkutsk, Buryatia, and the Transbaikal Territory," Putin stated.
Miners on the Move?
Despite the mining boom in regions like southern Russia and Siberia, many miners are reportedly looking to relocate. According to Newsko, developers in Perm, in the Ural region, have completed a new 440-square-meter mining farm on a 1.4-hectare plot of land. This facility has a 3 MW capacity and includes cooling rooms, gas boilers, and two large hangars.
In addition, oil giant Gazprom recently established a subsidiary focused on cryptocurrency mining. Reports suggest that this subsidiary is currently building a mining farm with 500 devices in Veliky Novgorod, a city in European Russia.
Elsewhere, Vladimir Uyba, the governor of the Komi region, announced plans to build 15 new crypto mining "data centers" in northeastern Russia. The authorities in Komi will collaborate with private crypto miners and contractors on the project, with the first two centers to be built in the settlements of Mikun and Sindor.
