Russia is gearing up to provide Kazakhstan with the extra energy needed to operate crypto-mining farms in the Central Asian country. New arrangements will allow miners in Kazakhstan to buy power directly from Russian power generation and distribution giant Inter RAO.
Kazakhstan miners to source energy from Russian Federation
Crypto mining companies operating in Kazakhstan will be able to rely on electricity generated in neighboring Russia to power their power-hungry hardware. To do this, the two partner countries will amend a bilateral agreement governing the coordinated operation of their energy systems.
The Moscow government has already ordered the necessary changes and started preparations to organize the supply of electricity to Kazakhstan’s crypto mining sector, the crypto news page of the Russian business news portal RBC revealed.
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Under the new provisions, Inter RAO, which has a monopoly on the export and import of electricity in Russia, will be able to sell in Kazakhstan under contracts concluded on commercial terms directly with the mining companies working there.
With its low and subsidized electricity tariffs, Kazakhstan has attracted many mining companies after the Chinese government cracked down on the industry last year. The ensuing spike in consumption has been blamed on power shortages and multiple outages in the country’s aging energy infrastructure. In January, Kazakh authorities temporarily closed about 200 mining facilities.
The Russian state-owned energy giant began considering additional supplies to Kazakhstan last fall, as the country expected its power deficit to reach 600 megawatts amid growing demand during the cold winter months after consumption approached 83 billion kilowatt hours (kWh) in the first nine months of 2021.
At the time, Inter RAO criticized Kazakhstan for capped tariffs which the Russian holding company said had resulted in a lack of funds to invest in upgrading and improving the country’s generation capacity and distribution network. In addition, electricity imports were previously limited in Kazakhstan, unless the national grid operator KEGOC identifies a risk of shortage.
Nur-Sultan lawmakers recently proposed a bill to curb what they describe as “uncontrolled use of electricity by ‘grey’ miners.” The new legislation aims to reserve the ability to mint digital coins only to mining companies registered with the Astana International Financial Center (AIFC). If the law is passed, foreign entities would only be allowed to operate under contracts with domestically licensed data centers.
Do you think Kazakhstan will be able to solve its energy deficit problems and ensure sufficient electricity supply for its crypto-mining industry? Share your thoughts on the subject in the comments section below.
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Russia To Provide Electricity To Cryptocurrency Miners In Kazakhstan – Mining Bitcoin News
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