Russia to Sell Power to Kazakhstan for Crypto Mining Caused Shortage

Kazakhstan To Buy Electricity From Russian Federation 

As reported, Inter RAO, one of the leading Russian electricity producers is planning on a much probable electricity supply to Kazakhstan from November. Noting that this is the first time, Kazakhstan going through a power deficit in the winter months, Alexandra Panina, an executive of the company’s management explained that the growing electricity consumption in the country has spiked to 7%. 

Panina stated:

“I am now discussing the possibility of commercial supply of Russian electricity to Kazakhstan in November.”

Representing the company’s management, Panina further explained that the estimations are suggesting that the power shortages in Kazakhastan can grow to 1 gigawatt (GW) in the near future as the country is soon expected to mount electricity deficits to 600 megawatts (MW) as the coming winter season takes to an increase in the demand. 

Crypto Is To Blame, Suggests Russia  

With the long going mining crackdown in China and the availability of low energy rates, many crypto mining companies have been shifting their operations to Central Asian nations. With similar reference to the situation, last week, the authorities in Nur-Sultan announced that power consumption has grown to approximately 83 billion kilowatt-hours (kWh) within the first nine months of the year, hinting the blame towards the miners.

During a meeting with Russian President Vladimir Putin at the beginning of this month, Nikolai Shulginov, Russia’s Energy Minister mentioned that his department is concerned regarding the electricity deficit driving in Kazakhstan due to the increased involvement with cryptocurrencies along with other factors behind the cause. 

“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.