- Due to crypto mining, household electricity consumption in Russia this year in a number of regions may grow 2.5 times.
- The industry is warning that citizens could face massive power outages in the coming years.
- The ministry believes that in order to solve the problem, crypto mining should be recognized as an entrepreneurial activity.
Due to miners, household electricity consumption in Russia this year in a number of regions may grow 2.5 times. Shadow miners of cryptocurrency not register a business, install energy-intensive equipment in residential buildings. The growth of their energy consumption under the guise of “population” in 2021 across the country could reach more than 20%, Mikhail Khardikov, head of the energy business.
There are about 100 thousand such miners in Russia, a source familiar with the situation told Izvestia. The industry is warning that citizens could face massive power outages in the coming years. The Ministry of Energy noted that the average number of consumers who were affected by power supply disruptions by the end of 2020 has already increased by 2.3 times, and the average duration of blackouts – by 19%. The ministry believes that in order to solve the problem, crypto mining should be recognized as an entrepreneurial activity.
The growth of electricity consumption by minors under the guise of “population” in 2021 in the country as a whole could reach more than 20% , Mikhail Khardikov, head of the energy business at En +, told Izvestia. At the same time, the increase in household energy consumption in the country exceeds all reasonable limits and in some regions may reach 250% , Igor Runets, CEO of Bitriver (the largest operator of data centers for crypto mining in Russia).
What Lead to Crypto Mining Crackdown
By shady manners, we mean people who, without registering their business, install energy-intensive equipment for crypto mining in residential premises and garages. Today they consume 500-700 MW, and their number may be 50-100 thousand people, a source in the industry told Izvestia . As a result, due to the rapid growth of shadow crypto mining, which creates an excessive load on the country’s energy system and is not regulated by law, in the coming years, Russians may face massive power outages , added Mikhail Khardikov.
Igor Runets stressed that regions suffering from home miners are already prone to frequent power outages due to overloading of power grids. This problem is especially acute in the winter season, when there is an increase in energy consumption by individuals, he added.
The Ministry of Energy told Izvestia that regions with the lowest electricity tariffs are attractive for miners.
Traditionally, the Irkutsk region is considered the center of home crypto mining , in which the Irkutsk and Shelekhovsky regions can be distinguished. In addition to it, home crypto mining may become widespread in the Krasnoyarsk Territory and in certain regions of the European part of Russia (for example, in some republics of the North Caucasus Federal District), – Igor Runets noted.
In October 2021, in the Irkutsk region, there were already cases of disconnection of entire streets, which had not happened before, even at 30 degrees below zero , he added. Earlier, local authorities announced an “avalanche” increase in electricity consumption in the region for household needs by 159% due to shadow miners. Such loads can lead not only to accidents and blackouts, but also to fires, concluded Igor Runes.
- There is such a situation: in the village of 200 houses there is a 2 MW transformer, that is, there is 10 kWh for each house there. And some of the residents decided to start crypto mining and bought crypto mining equipment for 500 kWh, – said Alexander Brazhnikov, executive director of the Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain.