Many have closed shop and relocated to Russia and other nearby countries as a result of China’s new crypto mining regulations. This has resulted in major power outages in the host areas.
Russia has recognised the growing problem of crypto mining and seeks to address it. Nikolai Shulginov, the Minister of Energy, recently stated that cryptocurrency miners should not have access to power at the same rate as regular consumers.
“To maintain the reliability and quality of power supply,” Shulginov told reporters at the recent Russian Energy Week, “we consider it necessary to exclude the possibility of electricity consumption by miners at tariffs for the population.” According to the Ministry, “there should be no situation,” in which cryptocurrency miners pay the same rate for electricity as the rest of the population. The governor of Irkutsk went on to say that underground “black” miners are placing a burden on the power grid and that the problem is becoming worse.
“It is impossible for miners to use the situation and worsen the situation at the expense of reduced tariffs for the population,” Shulginov continued.
If the Minister’s suggestion for separate tariffs is rejected, the level of cross-subsidisation will have to increase, which he considers “unacceptable.”
In a similar statement, Irkutsk Region Governor Igor Kobzev pleaded with Alex Novak, Deputy Prime Minister of the Fuel and Energy Complex, about underground illicit crypto miners. The governor expressed concern about the burden these operations are putting on the electricity grid, as well as the increased possibility of power plant accidents.
The Irkutsk Oblast now boasts the lowest electricity fees in the country, making it a desirable location for Chinese miners. According to the governor, this has resulted in a 159% increase in energy usage in the region when compared to 2020 figures.
On his Instagram page, Governor Kobzev stated that the illegal miners “shamelessly take advantage of the fact that our region has low electricity tariffs. They make money out of it.”