Russia Expects Sizable Increase in Crypto Miners’ Share of Power Usage
According to Pavel Snikkars, the Russian Deputy Energy Minister, the share of cryptocurrency miners could reach 1.5-22% of Russia’s total electrical power consumption by 2022. A government official reminded that the figure for last year was about 1% during a crypto conference hosted by RBC.
Snikkars said that the availability of electricity to mine across the country would depend on how many users want to connect to it in a specific location. The current offer of unused power generation capacities to the crypto industry is being made in certain Russian regions, Murmansk being mentioned by the deputy minister.
Snikkars explained how new power plants are constructed and the availability of these resources. The area’s potential buyers are the ones that decide to begin construction. It could take up to ten years for nuclear stations. Some projects may not be ready for launch in time or at all, and the generating capacity is not fully loaded.
Expert said that digital currency is also being used by individuals to increase consumption in areas with low electricity rates. The infrastructure can’t handle the increased power use. He stressed that the energy industry must take steps to ensure reliable supply for all users.
Pavel Snikkars, who also spoke at the event, discussed the efforts to regulate cryptocurrency mining. He expressed support for the draft legislation that was filed in mid November with the lower Russian house, the State Duma.
The Legal Department of the Duma has yet to approve the bill that amends the law “On Digital Financial Assets”. It is currently being reviewed by the Central Bank of Russia. Anatoly Aksakov (head of the parliamentary Financial Market Committee) stated that he expected lawmakers to pass this law by the end of 2018.
According to a report, demand in Russia for mining devices has increased in recent months. In addition to electricity usage, mining income has also been growing over several years prior to this year’s crypto-winter and sanctions. This was after the war in Ukraine that decimated Russian mining companies.
