Russia Considers Selling Power to Kazakhstan Amid Deficit Caused by Crypto Miners – Mining Bitcoin News

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:

How To Get Free Crypto  

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.

Coinbase Banner  

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.

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. 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.

FreeBitcoin Banner  

Read disclaimer

Go to Source
Author: Lubomir Tassev

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.