Russians who mine cryptocurrency at home have been accused of power supply problems in Irkutsk. In regions where Russia maintains the lowest electricity prices, power outages have become the norm. Household energy subsidies have made mining a source of income for many locals.
The popularity of household crypto mining in Irkutsk leads to a surge in electricity consumption
The grid operators in Irkutsk have been dealing with more and more power outages. The region and the city are experiencing a significant increase in electricity consumption, thereby overloading the distribution network. Local officials claimed that this was caused by cryptocurrency miners minting digital currencies in their apartments, basements and garages.
In order to get rid of the deteriorating situation, they have now proposed a series of measures to cope with the challenge. According to a report by the Russian business daily Kommersant, the authorities hope to upgrade the capacity of the Irkutsk Oblast’s distribution network, impose higher tariffs on crypto miners, and establish a dedicated platform to host their events.
The publication shows that in December of last year, various regions of Irkutsk experienced planned or emergency power outages. The local utility company told the newspaper that since June, the grid pressure in residential areas has increased sharply.
“Despite the warm weather in November, the load increased by nearly 40% compared to last year. The huge load on the power network and the increasing number of blackouts are related to the activities of miners,” Irkutsk Power Grid Corporation (International Education Center) explain. Its calculations show that consumption in Irkutsk has soared by 108% throughout 2021.
IESC emphasized that coin minting is very energy intensive because the equipment runs around the clock. The engineer warned that the town’s existing power grid was not designed for the constant “industrial” load generated by mining hardware. The company has been forced to cut out power in many areas to replace fuses and install higher-capacity power cords.
More than 1,100 “gray” crypto mining cases registered in 2021
Utilities in the area have been struggling to find mining facilities that have caused a surge in consumption. “In Irkutsk, 21 electrical devices suspected of mining cryptocurrency were found…Mining equipment was installed on balconies, residential areas and basements of apartment buildings,” Irkutsknegosbit Announce.
During the unannounced inspections, the inspectors found more than 1,100 so-called “grey”Mining in Irkutsk Oblast in 2021. The most recent Report Announced that the Irkutskenergosbyt utility company has filed 85 lawsuits against those involved in household crypto mining, with a total claim of 73.3 million rubles (more than US$980,000). It has won 9 court cases and is expected to receive 18.7 million rubles (US$250,000) in compensation.
In December, the Moscow Federal Government allow Authorities in various regions of Russia independently determine the electricity bills of local residents. This measure is expected to increase the cost of amateur cryptocurrency mining. Russian household electricity subsidies are usually used to mint digital currency at home.
Known as the mining capital of Russia, when the average electricity price of Irkutsk in Russia was six times higher, its electricity rate was the lowest in the country, at only 0.86 rubles (0.01 US dollars) per kilowatt-hour.Officials in Moscow and Irkutsk and other regions called for make out Mining is a commercial activity that introduces higher electricity bills for miners and imposes taxes on them.One working team The State Duma is discussing regulatory proposals for the industry and other crypto-related activities.
Do you hope that Russia will soon regulate cryptocurrency mining and increase the electricity bills of miners? Tell us in the comments section below.
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