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Russia considers giving surplus electricity to legal crypto miners

Russia considers giving surplus electricity to legal crypto miners

GrafaGrafa2024/09/06 01:15
By:Isaac Francis

The Russian Ministry of Energy has announced its readiness to allow legal crypto miners access to surplus electricity, as the country continues to explore its approach to the growing crypto industry. 

Speaking at the Eastern Economic Forum in Vladivostok, Energy Minister Sergei Tsivilev outlined the ministry's plan to support legal miners while prioritising the needs of the nation’s energy sector. 

Minister Tsivilev clarified that crypto mining is "not a priority" for the government. 

However, he highlighted the potential benefits of providing surplus power to legal miners, noting, "When power plants are operating at full capacity, we are ready to give this surplus energy to miners – but only surplus energy. 

The miners in question must be legal, and they must pay taxes." 

This approach would allow power plants to operate at 100% capacity, generating tax revenue and improving the economy of power stations. 

Tsivilev emphasised that only miners registered on a government-curated list would be eligible for this surplus power. 

He suggested that miners using this regulated pathway might pay only a nominal fee for electricity, provided they fulfill tax obligations on their mined coins. 

The minister stated that the primary focus for access to power remains on "socially significant facilities" and Russian industry, with mining not being a governmental priority. 

Despite some benefits, the government remains cautious about fully backing the crypto mining sector. 

Concerns persist over the strain crypto mining places on regional power grids. 

Some regions have reported issues with grid overload, and President Vladimir Putin has previously expressed concerns about the rising electricity demand from mining activities. 

In response to these concerns, the new mining law allows the Russian government to impose restrictions on mining in specific regions and prevents electric power companies from directly participating in mining. 

Nevertheless, some of Russia's largest oil companies have started pilot projects with miners, exploring the use of associated gas from drilling sites to support mining operations.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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