Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The Russian Bitcoin mining region of Buryatia is set to receive an energy enhancement, with a modernized thermal power facility expected to be operational “before the end of 2029.”
According to the state-owned news agency TASS, the new power facility “will produce not only heat but also electricity.”
This initiative will assist Buryatia in “establishing a power reserve.” Additionally, it will aid Ulan-Ude, the capital of Buryatia, in managing an “increasing demand on the power grid,” as stated by its government.
Buryatia: A Hesitant Russian Bitcoin Mining Hub?
A significant increase in cryptocurrency mining has been attributed to this demand. President Vladimir Putin remarked this year that Buryatia and other regions have experienced challenges due to a surge in BTC mining.
Putin and others have asserted that miners are putting pressure on the local power grids. Buryatia is currently supplied by the Gusinoozerskaya TTP, a facility from the Soviet era that was completed in the late 1970s.
The Soviet-era Gusinoozerskaya Thermal Power Plant. (Source: Alava CC BY-SA 3.0)
The plant experienced damage in June 2022, when a transformer malfunction and subsequent fire resulted in a power outage lasting several days.
“The project will [allow us to add] two additional power units at Gusinoozerskaya. There will be an extra reserve.”
Yevgeny Lukovnikov Deputy Chairman of the Buryatia Local Government
The local government of Buryatia is so assured of the plant’s success that it has stated it will be capable of supplying 300 MW of power to neighboring Mongolia.
The local energy provider is reportedly planning to invest over $418 million in the “modernization” initiative.
The plans to activate the “TPP-2” station trace back to the late Soviet era. Project managers from the Soviet Union began work on it in the 1980s and even managed to bring a steam boiler online in 1991.
However, the project has remained incomplete since then – although this single boiler still contributes 30% of Ulan-Ude’s heating capacity.
New Crypto Mining Hub? Russian Region to Build 15 New Data Centers
Russia’s crypto transition is progressing rapidly, with the northeastern region of Komi Republic announcing intentions to construct 15 new crypto mining data centers.
The first two centers in Mikun and Sindor will incur a…— Cryptonews.com (@cryptonews) September 20, 2024
New Miners Held Responsible
TASS reported that crypto miners in Irkutsk “partly contributed to the energy deficit issue,” which has “compromised the reliability of power supply in Buryatia.”
Related Posts
The Russian Ministry of Energy has documented several energy deficit “issues” in the traditional Bitcoin mining hub of Irkutsk.
The ministry indicated that “due to the expansion of mining,” power challenges are now emerging in the Irkutsk-Cheremkhovo district of the Irkutsk Oblast.
It also highlighted issues “in the southern region of Buryatia and specific areas of the Zabaikalsky Krai.”
Buryatia on a map of Russia (Crimea disputed). (Source: Stasyan117/Seryo93 [CC BY-SA 4.0])
Putin has stated that mining “poses serious risks for enterprises, housing, and communal services systems.”
Despite its status as a Bitcoin mining hub, Yevgeny Lukovnikov, the Deputy Chairman of the Buryatia Local Government, suggested that the majority of Bitcoin miners in Buryatia operate illegally.
He mentioned that “there are only two companies in Buryatia that are involved in [crypto] mining.”
Both of these miners’ energy consumption is “regulated, not uncontrolled,” Lukovnikov asserted.
Russia is investigating crypto payments for military-related imports! A new focus group aims to address international trade challenges amid sanctions.#CryptoPayments #Russiahttps://t.co/YZT9CK3q1y
— Cryptonews.com (@cryptonews) September 17, 2024
Russia is investigating crypto payments for military-related imports! A new focus group aims to address international trade challenges amid sanctions.#CryptoPayments #Russiahttps://t.co/YZT9CK3q1y“We have nearly eradicated crypto mining in Buryatia. We are very vigilant about this. […] If crypto mining is going to involve high consumption and impact life in the region, then it should be restricted. And in some instances, miners should be disconnected from the grid.”
Lukovnikov
However, despite Lukovnikov’s firm stance on Bitcoin mining, Buryatia – similar to Irkutsk – has a more complex approach to miners.
Russia’s agriculture minister urged citizens to attend church and pray for rain as the ongoing lack of precipitation jeopardizes the sowing of winter wheat https://t.co/Na8cbGRTc5
— Bloomberg Energy (@BloombergNRG) October 7, 2024
The government of Irkutsk has also imposed restrictions on miners while attempting to attract them to the region.
Moscow is poised to initiate taxation on industrial crypto mining. Some analysts believe this will assist Russia in establishing Bitcoin reserves for use in international trade agreements with foreign companies.
This has prompted certain regions, typically overlooked by Bitcoin miners, to unveil ambitious new projects for cutting-edge data centers.
Russian crypto specialists indicate that over 90% of miners in the country concentrate their efforts on Bitcoin.
The post Russian Bitcoin Mining Hotspot Set for Energy Boost appeared first on Cryptonews.
