Russian Power Provider Requests Crypto Miners to Turn Off Mining Rigs to Prevent Power Outages

The power company in the Russian region of Dagestan has requested crypto miners to deactivate their equipment this winter in order to prevent power outages.

Russia’s energy provider in Dagestan is asking crypto miners to shut down their rigs, leading to concerns about potential blackouts.

Image source: Tim Alper

Date: January 16, 2024 | Time: 23:04 EST | Reading Time: 2 mins

📸 Source: Tatyana Olina/Adobe

The state-run power provider in the Russian republic of Dagestan has made an unusual request to crypto miners in the region. They have asked these miners to turn off their mining rigs this winter season to avoid power outages and blackouts. The provider, called Dagenergo, has written a polite message to mining farm operators in Dagestan, urging them to power down their rigs in order to prevent technological disruptions caused by overloading the electrical network.

According to the power company, “dynamics of the network load” analysis has shown a significant surge caused by mining farms. This situation has now led to a particularly difficult scenario in several parts of Makhachkala, the capital city of Dagestan, where around a million people reside. Dagenergo claims that they are actively working to identify these mining farms and have already dismantled 13 of them in 2023. However, due to the advancements in mining technology, it’s not always easy to identify them quickly.

• Best Crypto to Buy Today: TAO, BEAM, CHZ, Bitcoin Minetrix, and Sponge V2 Token
• The New Ethereum Upgrade: Dencun Goes Live on Goerli Testnet!
• Cardano’s ADA price is dropping towards $0.52. Is it time to buy the dip?

The power company is now asking all miners throughout Dagestan to turn off their rigs, at least during cold weather periods, as electricity provides not only light but also heat in the homes of their fellow countrymen. Dagenergo appreciates the understanding of crypto miners in this matter.

Dagestan Battling with Crypto Mining Issues?

Image source: Danloud [CC BY-SA 3.0]

The issues surrounding crypto mining in Dagestan have been a cause for concern. The power provider’s plea to turn off mining rigs during the cold season provides valuable insight into the challenges faced by the energy company. However, this raises a few important questions:

Q&A:

Q1: Why are mining rigs causing power outages and blackouts in Dagestan?

A1: Mining rigs consume a significant amount of electricity, putting additional strain on the electrical network. This strain can lead to overload, resulting in power outages and blackouts in certain areas.

Q2: How is the power provider identifying mining farms?

A2: The power provider is actively working to identify these mining farms through thorough investigation and analysis of the network load. However, due to advanced mining technology, it is not always easy to identify them quickly.

Q3: Are there any alternatives to prevent power outages caused by mining rigs?

A3: Yes, one alternative is for miners to temporarily power down their rigs during cold weather periods. By reducing the strain on the electricity network, power outages and blackouts can be avoided, ensuring uninterrupted power supply for the residents of Dagestan.

Image source: Tatyana Olina/Adobe

The challenges faced in Dagestan are not unique. In the past, the Northern Caucasus branch of the Russian state-run power firm, PAO Rosseti, shut down 36 “illegal” crypto mining farms in Dagestan in 2022 and the first half of 2023. These farms were using illegal grid connections, resulting in significant damages worth 157.95 million rubles (approximately $1.8 million).

The severity of the issue is evident from the discovery of a 1MW mining center, equivalent to the power consumption of a residential complex with 300 apartments, in Kaspiysk, one of the largest farms found by Rosseti.

Illegal crypto mining in various regions, such as Abkhazia, has also caused energy-related problems. Local government bodies have started conducting unannounced raids on industrial facilities and private households to crack down on illegal crypto miners.

It is clear that the ramifications of crypto mining go beyond profit and innovation. In order to ensure a stable power supply and prevent energy-related issues, it is crucial for both miners and power companies to find mutually beneficial solutions. ⚡

---

References:

1. Russian Experts Say 2024 to be a Big Year for Cross-Border Crypto and CBDC Payments
2. CleanSpark Considers Buying 160K Bitcoin Miners by 2025
3. Riot TeraWulf, CleanSpark Best-Positioned Miners Post-Bitcoin Halving: CoinShares
4. CEO of OpenAI Sam Altman Says There’s No Way to Build the Future AI Without a Major Energy Breakthrough
5. South Korea’s Tax Authority, DAXA to Form a Committee to Prevent Illegal Transactions: Report

---

📣 Share your thoughts on this article and help us spread the word on social media!

We will continue to update Blocking; if you have any questions or suggestions, please contact us!