Amid high energy demand from miners, Russia is considering building new power plants in Siberia – Bitcoin Mining News

Russia’s energy minister has admitted that increased electricity consumption in the cryptocurrency sector may require the construction of new electricity generation facilities in Siberia. Demand in residential areas also continues to grow after regional authorities rejected a proposal to introduce higher tariffs for Russians minting digital coins at home.

Authorities in Russia are considering new energy infrastructure, production opportunities in cryptocurrency regions

Russian Energy Minister Nikolay Shulginov admitted that in some regions of Siberia, where the industry is expanding, the demand for electricity from cryptocurrency miners is increasing. Additional production capacity may be needed to meet their needs, local media and cryptocurrency news outlets have quoted.

Shulginov did not reveal specific plans, but made it clear that Russian authorities in these regions are considering further development of power grids used by mining companies and the construction of more power plants. reports that currently the networks in the Republic of Khakassia and Irkutsk region are experiencing the greatest load.

“The position of the Ministry of Energy has always been based on the need to create working conditions for mining,” the government official stressed. He also noted that the population’s electricity consumption has also increased, and distribution networks are sometimes damaged.

“As for industrial mining, it is also growing mainly in regions where the tariff is low. In these regions, we observe a significant increase in consumption, which should be taken into account,” Shulginov said in an interview with “Russia-24” TV channel and elaborated:

Most likely, it will not pass without the establishment of offspring [capacities] In the southeastern part of the unified energy system of Siberia.

Energy-rich Irkutsk maintains low electricity rates for cryptocurrency miners

In Russia, which has abundant cheap energy resources and a cool climate, cryptocurrency is expanding as both a profitable business activity and a source of additional income for many ordinary Russians tinkering in basements and garages. According to a study published in October, bitcoin mining revenues in Russia increased 18-fold in four years before markets and sanctions were affected this year.

Home mining has been blamed for accidents and blackouts in places like Irkutsk, dubbed the mining capital of Russia, which offers the lowest electricity rates in the country. A proposal to introduce differentiated tariffs that increase energy costs for amateur miners to limit consumption was supported by the Ministry of Energy, but ultimately rejected by local authorities, except in the Kemerovo region.

In early December, Deputy Energy Minister Pavel Snikkars said the industry could double its share of Russia’s total energy consumption by 2022. His department and the Bank of Russia backed a bill to regulate cryptocurrency mining, but lawmakers delayed it. Adoption of the bill for 2023.

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consumption, Crypto, cryptocurrency, cryptocurrency, cryptocurrency, cryptocurrency, demand, electricity, energy, minister of energy, ministry of energy, power generation, network, miners, mining, networks, electricity, power plants, Russia, Russian

Do you think the Russian government will take steps to ensure the power supply of cryptocurrency miners? Let us know in the comment section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy journalist from Eastern Europe who likes to quote Hitchens: “Being a writer is more about who I am than what I do.” Along with cryptocurrency, blockchain and fintech, international politics and economics are two other sources of inspiration.

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