Fun

Russia Considers Selling Power to Kazakhstan Amid Deficit Caused by Crypto Miners

News Feed - 2021-10-30 07:10:31

Russia Considers Selling Power to Kazakhstan Amid Deficit Caused by Crypto Miners


State-owned Russian energy giant Inter RAO is now discussing electricity supplies for Kazakhstan where crypto miners have allegedly caused a spike in consumption this year. The country is expecting the power deficit to reach 600 megawatts as demand during the winter increases even further. Kazakhstan Likely to Buy Electricity From Russian Federation to Deal With Shortages


Inter RAO, a major electricity producer in Russia, is holding talks on the possible supply of electricity for Kazakhstan starting from November, a high-ranking representative told reporters. Alexandra Panina, a member of the company’s management, explained that consumption growth in Kazakhstan is around 7%, noting that for the first time the country is facing a deficit in the cold winter months. Quoted by the Interfax news agency, she stated: I am now discussing the possibility of commercial supply of Russian electricity to Kazakhstan in November.


Shortages in Kazakhstan are expected to amount to 600 megawatts (MW) when demand peaks during the upcoming winter season, and estimates suggest the deficit could exceed 1 gigawatt (GW) in the future, Panina added. She also revealed that Inter RAO is reviewing a request from Kyrgyzstan for additional supplies through Kazakhstan’s grid.


Crypto mining companies have been moving to the Central Asian nation attracted by its low energy rates amid an ongoing crackdown on the industry in China. Authorities in Nur-Sultan announced last week that electricity consumption has increased to almost 83 billion kilowatt-hours (kWh) in the first nine months of the year, stating that miners are mainly responsible for the surge. Russia Blames Kazakhstan’s Booming Crypto Mining Sector for Supply Issues


Alexandra Panina singled out two main reasons for Kazakhstan’s current problems. She believes that its cap on electricity prices has led to insufficient investments in modernizing and upgrading the country’s exciting infrastructure and generation capacity. Then, the cheap electricity has brought many cryptocurrency miners into the country which was not prepared for the influx. Miners have become a big problem for Kazakhstan, the Russian energy executive stressed.


Electricity imports are banned by law in Kazakhstan unless the national grid operator KEGOC signals that there is a risk of power deficit, which is exactly the case right now. That makes it possible to source electrical power from the neighboring Russian Federation.


Earlier this month, during a meeting with Russian President Vladimir Putin, Russia’s Energy Minister Nikolai Shulginov said that his department is worried about Kazakhstan’s electricity deficit, caused by the energy-intensive extraction of digital currencies, among other factors, which had not been planned for.


“This affects the operation of our power plants, because they are used, firstly – in inefficient modes, secondly – we are often forced to quickly turn them on,” Shulginov complained at the Kremlin. Alexandra Panina confirmed that the issue has reached a “serious political level” and called for bringing it back to the commercial sphere while hinting that Russia may raise export rates for Kazakhstan.


Do you think Kazakhstan will be forced to purchase electricity from Russia to satisfy the growing demand from cryptocurrency miners? Tell us in the comments section below. Kazakhstan Expects $1.5 Billion From Crypto Mining in 5 Years, Estimates Suggest MINING | 13 hours ago Bitfarms Mega-Mining Facility Raises Concerns Among Legislators in Argentina MINING | 5 days ago Tags in this story Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, deficit, Electricity, electricity supplier, Energy, energy company, energy giant, Exports, imports, Inter RAO, Kazakhstan, Panina, power, power generation, Putin, Russia, russian, Russian Federation, shortages, Supplies


Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

XRP Price At Risk Of 20% Crash To $1.55 If This Level Fails To Hold
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
US Central Bank Blamed for 2020 Financial Crash: ‘The Fed Is Lawless Economic Government Unto Itself’
US Central Bank Blamed for 2020 Financial Crash: "The Fed Is Lawless Economic Government Unto Itself"The last two months dealing with the coronavirus outbreak have been strange, to
Vivek Ramaswamy predicts Kamala Harris may adopt pro-crypto position
Vince Quill1 hour agoVivek Ramaswamy predicts Kamala Harris may adopt pro-crypto positionBoth Kamala Harris and her running mate, Tim Walz, have yet to present clear policy positions on digital asset regulation in the Un
David Attlee3 minutes agoSpain launches AI regulation agency in bid to become industry leaderSpain has become one of the first countries in the European Union to establish its own task force for regulating Artificial Int
Bitcoin bear trap over? BTC price fractal hints at parabolic move next
Zoltan Vardai6 hours agoBitcoin bear trap over? BTC price fractal hints at parabolic move nextBitcoin still faces significant resistance at $62,000, and if it breaks, it could liquidate over $845 million of leveraged sho
Cardano (ADA) loses top 10 crypto spot as Tron sees growth
Nancy Lubale6 hours agoCardano (ADA) loses top 10 crypto spot as Tron sees growthADA falls from the top 10 list of largest cryptocurrencies as competing blockchains see an uptick in users. 998 Total views1 Total sharesL
Digital Token Issued In Russia to Facilitate Investments in Palladium
Digital Token Issued In Russia to Facilitate Investments in Palladium Transactions with digital assets backed by precious metals are beginning in Russia with the launch of a token
Bitcoin, Ethereum Technical Analysis: BTC Back Above $23,000 Following Tesla Q4 Earnings Report
Bitcoin, Ethereum Technical Analysis: BTC Back Above $23,000 Following Tesla Q4 Earnings Report Bitcoin rallied back above $23,000 on Thursday, following the release of Teslaȁ
Bitcoin, Ethereum Technical Analysis: BTC, ETH Consolidate After Monday’s Surge
Bitcoin, Ethereum Technical Analysis: BTC, ETH Consolidate After Monday’s Surge Crypto markets marginally consolidated on Tuesday, following yesterday’s price surge which
Historian Niall Ferguson Says Bitcoin Is Winning the Covid-19 Monetary Revolution
Historian Niall Ferguson Says Bitcoin Is Winning the Covid-19 Monetary Revolution Historian and senior fellow with the Hoover Institution at Stanford University,
Bank of Spain Criticizes El Salvador’s Foray Into Bitcoin
Bank of Spain Criticizes El Salvador"s Foray Into Bitcoin The Bank of Spain, the central bank of the country, criticized the adoption process El Salvador chose when declaring Bitco
Best Altcoins to Buy as $USDC Stablecoin Receives Approval for Use in Japan
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu