Russia is preparing to provide Kazakhstan with the additional energy needed to operate cryptocurrency mining farms in the Central Asian country. The new agreements will allow Kazakhstan’s miners to buy electricity directly from Russian power generation and distribution giant Inter RAO.
Miners in Kazakhstan to supply energy from the Russian Federation
Cryptocurrency mining businesses operating in Kazakhstan will be able to rely on electricity produced in neighboring Russia to power their energy-hungry hardware. To enable that, the two partner countries will amend a bilateral agreement governing the coordination of their energy systems.
The government in Moscow has ordered to make the necessary changes and begin preparations to organize the power supply of the crypto mining sector of Kazakhstan, the crypto news page of the Russian business portal RBC revealed.
Under the new agreements, Inter RAO, the exclusive importer and exporter of electricity in Russia, will be able to sell electricity in Kazakhstan under contracts signed on commercial terms directly with mining companies working with them. there.
With low, subsidized electricity prices, Kazakhstan has attracted many miners after the Chinese government cracked down on the industry last year. The subsequent surge in consumption is blamed for power shortages and many breakdowns of the country’s aging energy infrastructure. In January, the Kazakh authorities temporarily closed about 200 mining facilities.
Russia’s giant state energy corporation starts its first business considering additional supply to Kazakhstan last fall, when the country expected an electricity deficit of 600 megawatts amid increased demand during the frigid winter months after consuming nearly 83 billion kilowatt hours ( kWh) for the first nine months of 2021.
At the time, the Inter RAO criticized Kazakhstan for its limited tariffs, which Russia said had led to a lack of capital to invest in modernizing and upgrading its power generation capacity and distribution network. country. In addition, electricity imports were previously restricted in Kazakhstan, unless the national grid operator KEGOC determine the risk of deficiency.
Lawmakers in Nur-Sultan recently proposed a bill aimed at reducing what they describe as “the uncontrolled use of electricity by ‘gray’ miners.” The new law seeks to set aside mining opportunities. The digital currency is only available to miners registered with the Astana International Financial Center (AIFC).If the law is passed, foreign legal entities will only be allowed to mine under contracts with the hubs. data is licensed in the country.
Do you think Kazakhstan will be able to solve its electricity deficit problem and ensure sufficient electricity supply for its crypto mining industry? Share your thoughts on this topic in the comments section below.
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