Russia proposes cutting crypto miners’ power during shortages

The Russian Energy Ministry has proposed measures to limit the power supply to cryptocurrency miners during times of energy shortages. 

This initiative is intended to prevent overloading the grid as Bitcoin mining operations continue to expand across the country. 

Yevgeny Grabchak, Russia's Deputy Minister of Energy, stated that power providers should have the authority to disconnect miners when energy demand peaks. 

This would allow for surplus capacity to be used during low-demand periods, with miners drawing on the excess power when it is available. 

"Miners are a new category of consumers. We don’t always have electricity consumption peaks, and there is often free capacity on grids," Grabchak said. 

Despite this flexible approach, miners may be asked to relocate to regions with more stable energy supplies. 

Russian Energy Minister Sergey Tsivilev suggested that miners move to areas without energy shortages, following discussions during a meeting with President Vladimir Putin. 

The proposal also includes options for self-limitation by miners or the installation of automated solutions to manage energy consumption more efficiently. 

While President Putin legalized crypto mining earlier this year, he emphasized the importance of preventing power grid issues similar to those faced in regions like Abkhazia and Kazakhstan. 

Areas such as Irkutsk, a mining hotspot, have already experienced challenges with power consumption, with an estimated one-third of Russia's miners operating there. 

As mining activities continue to grow, more companies are establishing new mining farms across Russia. 

For instance, a 440-square-meter mining facility was recently completed in the mid-Urals, and oil giant Gazprom is building a 500-rig farm in Veliky Novgorod. 

Plans are also underway to develop 15 new crypto mining centers in northeastern Russia.