Russia Considers Power Disconnects for Crypto Miners
Russia is considering a reform that would disconnect cryptocurrency miners from the power grid based on energy availability. This proposal, supported by the State Duma Energy Committee, aims to address the energy deficit in certain regions. Miners would be classified in a new power supply reliability group and could face disconnection for up to 500 hours per year, compared to households which can be disconnected for 72 hours per year.
An Alternative to Higher Power Tariffs
The proposal serves as an alternative to the higher power tariffs for cryptocurrency mining activities being drafted by the Ministry of Energy. The Irkutsk region, which has the world’s lowest electricity prices, has seen a surge in mining activity, causing an energy shortage. However, implementing higher tariffs could lead mining companies to relocate, distribute their activities to residential areas, or operate in the gray market.
Criticism from Mining Industry
Oleg Ogienko, director of government relations at Bitriver, expressed concerns that higher tariffs would disrupt the mining industry. He suggested that mining companies may move their operations elsewhere if faced with increased costs. Alexey Tarapovsky, founder of Anderida Financial Group, criticized the proposed tariff increase, arguing that it would create an imbalance and discriminate against mining activities.
Hot Take: Balance Between Energy Supply and Mining Growth
As Russia considers options to address the energy deficit caused by cryptocurrency mining, the proposal to disconnect miners for up to 500 hours per year has sparked debate. While the move seeks to balance energy availability, it could have unintended consequences, such as mining companies relocating or operating in less regulated areas. Finding a solution that supports both the energy needs of the regions and the growth of the mining industry will be crucial for Russia’s crypto ecosystem.
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