Russia’s Largest Power Grid Operator to Support Bitcoin Mining

Rosseti, Russia’s largest state-backed power grid operator, has announced plans to support Bitcoin mining by utilizing underloaded power centers. According to a statement, the initiative aims to maximize unused energy capacity while generating additional revenue streams.

Maximizing Unused Energy Capacity

As the largest grid company in Russia, Rosseti believes it can act as an operator coordinating the placement of mining infrastructure. The company’s advanced infrastructure enables it to monitor and manage electricity consumption from mining operations efficiently.

Rosseti will focus on connecting electricity consumers, particularly Bitcoin miners, to power centers with low-loading prospects. This approach is expected to enhance the use of idle capacity, increase tariff revenues, and support the development of the regional economy through tax contributions.

Specialized Tariffs and Incentives

In addition to utilizing underloaded power centers, Rosseti is considering introducing specialized tariffs to manage demand effectively and incentivize the growth of mining operations. These tariffs will help balance the energy needs of miners while ensuring the stability of the power grid.

Russia’s Booming Bitcoin Mining Market

Following President Vladimir Putin’s introduction of legislative changes, Bitcoin mining has experienced significant growth in Russia. The changes allowed businesses and individual entrepreneurs to engage in crypto mining once they were officially registered in the national miners’ registry. A subsequent bill also exempted mining operations from value-added tax.

As a result, demand for crypto mining equipment surged three-fold in the fourth quarter of 2024. However, concerns over the strain Bitcoin miners put on local electricity grids have also been raised, prompting the Kremlin to warn of a potential energy crisis if the sector goes unchecked.

Regional Controls and Restrictions

In response to these concerns, Russia has introduced restrictions on crypto mining in certain energy-strained regions, including Dagestan, Chechnya, and Ingushetia, as well as specific locations in Irkutsk, Buryatia, and Zabaikalsky Krai. These restrictions aim to prevent an energy crisis during peak periods of high demand.

For more news on Bitcoin mining and crypto regulations, visit Global Crypto News.

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