Kyrgyzstan to Power Crypto Mining Hardware With Green Energy

Kyrgyzstan to Power Crypto Mining Hardware With Surplus Green Energy

The President of Kyrgyzstan, Sadyr Japarov, has approved the construction of a mining farm for digital assets at the site of the country’s Kambar-Ata hydroelectric power plant. The mining facility will have a planned capacity of up to 30 MW and will be funded by an investor. All processes will be automated and controlled by power engineers. The Kambar-Ata HPP has been operational since 2010, capable of producing 120 MW of electricity, but only 90 MW can currently be used by consumers due to the limited transfer capacity of the electric grid.

Main Breakdowns:

President Japarov has approved the construction of a mining farm for digital assets in Kyrgyzstan.
The mining facility will have a planned capacity of up to 30 MW.
All processes will be automated and controlled by power engineers.
The Kambar-Ata HPP has been operational since 2010 but can currently only use 90 MW of its 120 MW capacity.
The mining farm aims to eliminate the 6.816 billion kWh of lost electricity worth approximately $37 million over the past 13 years.

Following China’s crackdown on the crypto mining industry, many mining enterprises have been attracted to the region. Neighboring Kazakhstan has faced a power deficit due to the influx of miners and has implemented a law limiting their electricity consumption. Kyrgyzstan has previously shut down illegal mining facilities and increased electricity rates for miners. In 2022, a new law was introduced that provided a legal definition for virtual assets, banned crypto payments, and imposed taxation and registration requirements for mining businesses.

Hot Take:

Kyrgyzstan’s decision to power crypto mining hardware with surplus green energy is a smart move that can help utilize the country’s excess electricity and reduce losses. By attracting mining enterprises, Kyrgyzstan can benefit from the economic opportunities presented by the crypto industry while also addressing its power deficit. However, it is essential for the country to ensure proper regulation and sustainability measures to prevent any negative impact on the environment and electricity infrastructure.