Russian Bitcoin Mining Hotspot Set for Energy Boost
Bitcoin Mining
Russia
Republic of Buratiya says only two industrial crypto miners operate on its territory
Last updated:
October 13, 2024 23:00 EDT
Author
Tim Alper
Author
Tim Alper
About Author
Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked…
Author Profile
Share
Copied
Last updated:
October 13, 2024 23:00 EDT
Why Trust Cryptonews
With over a decade of crypto coverage, Cryptonews delivers authoritative insights you can rely on. Our veteran team of journalists and analysts combines in-depth market knowledge with hands-on testing of blockchain technologies. We maintain strict
editorial standards
, ensuring factual accuracy and impartial reporting on both established cryptocurrencies and emerging projects. Our longstanding presence in the industry and commitment to quality journalism make Cryptonews a trusted source in the dynamic world of digital assets.
Read more about Cryptonews
The Russian
Bitcoin mining
hotspot of Buratiya will get an energy upgrade, with a revamped thermal power plant set to come online “before the end of 2029.”
Per the state-run news agency
TASS
, the new power plant “will generate not only heat, but also electricity.”
The move will help Buratiya “create a power reserve.” And this will help Ulan-Ude, the capital of Buryatia, deal with an “increasing load on the power grid,” its government said.
Buratiya: A Reluctant Russian Bitcoin Mining Hotspot?
A
sharp rise in crypto mining
has been blamed for this load. President Vladimir Putin this year noted that Buratiya and other areas have suffered from a rise in
BTC
mining.
Putin and others have claimed that miners are straining power grids in the area. Buratiya is currently served by the Gusinoozerskaya TTP, a Soviet-era construction completed in the late 1970s.
The Soviet-era Gusinoozerskaya Thermal Power Plant. (Source: Alava CC BY-SA 3.0)
The plant suffered damage in June 2022, when a transformer failure and subsequent fire cut power off for several days.
The Buryatia local government is so confident of the plant’s success that it has claimed it will be able to provide 300 MW of power to neighboring Mongolia.
The local power provider is reportedly looking to spend over $418 million on the “modernization” project.
The plans to bring the “TPP-2” station online date back to late Soviet times. The Soviet project managers began work on it in the 1980s, and even managed to bring a steam boiler online in 1991.
However, the project has remained unfinished ever since – although this single boiler still provides 30% of Ulan-Ude’s heating capacity.
Miners Blamed
TASS explained that crypto miners in Irkutsk “partly created the energy deficit problem,” which has “weakened the reliability of power supply in Buryatia.”
The Russian
Ministry of Energy
has reported multiple energy deficit “problems” in the traditional Russian Bitcoin mining hotspot of Irkutsk.
The ministry said that “due to the development of mining,” power issues were now occurring in the Irkutsk-Cheremkhovo district of the Irkutsk Oblast.
It also noted problems “in the southern part of Buryatia and certain areas of the Zabaikalsky Krai.”
Buryatia on a map of Russia (Crimea disputed). (Source: Stasyan117/Seryo93 [CC BY-SA 4.0])
Putin has claimed that mining “is fraught with serious consequences for enterprises, housing, and communal services systems.”
Despite its reputation as a Bitcoin mining hotspot, Yevgeny Lukovnikov, the Deputy Chairman of the Buryatia Local Government, hinted that most Bitcoin miners in Buratiya are illegal.
He said that “there are only two enterprises in Buryatia that are engaged in [crypto] mining.
Both of these miners’ power consumption is “capped not uncontrolled,” Lukovnikov insisted.
However, despite Lukovnikov’s tough talk on Bitcoin mining, Buryatia – like Irkutsk – has a more nuanced approach to miners.
Irkutsk’s own government has in turn cracked down on miners and tried to woo them to the region.
Moscow is set to begin taxing industrial crypto mining. Some thinkers believe that this will help Russia build Bitcoin funds it can use in international trade deals with overseas firms.
This has led some regions traditionally unfavored by Bitcoin miners to announce ambitious new plans for state-of-the-art data centers.
Russian crypto experts say that over 90% of miners in the nation focus their efforts on Bitcoin.
Follow us on Google News