- Russia to supply additional energy to Kazakhstan to run crypto mining farms.
- Kazakhstan’s miners can purchase electricity directly from Inter RAO owing to the new arrangements.
- The decision has been taken considering the rising demand for electricity by miners since mining activities have increased.
Kazakhstan’s crypto mining enterprises can now provide power to their energy-deprived hardware upon receiving electricity from Russia. Both the countries will modify a bilateral agreement that will govern their energy systems’ correlated operation.
#Russian energy giant considers #electricity supplies for Kazakhstan to satisfy rising demand from #crypto miners. https://t.co/rTaQ7ODN9V— Bitcoin News (@BTCTN) October 29, 2021
Moscow’s government has ordered the required changes besides starting preparations with an aim to organize the power supply for the mining sector of Kazakhstan.
In line with the recent arrangements, Inter RAO, which has control over the export as well as import of Russia’s electricity, will sell in Kazakhstan based on contracts of the commercial terms with the mining companies that operate there.
After the collapse of the Chinese government on the industry in 2021, Kazakhstan’s low subsidized prices of electricity impressed and pulled a number of mining firms towards itself. The upcoming surge in the utilization was termed as the reason behind several breakdowns and power shortages that affected the nation’s aging energy infrastructure.
Authorities in Kazakh temporarily closed over 200 mining facilities in January.
The Russian energy leader initially began thinking about extra supplies during the last fall. That time, the nation was going through an energy shortfall and there was a huge increase in demand in the cold winter months. Also, in the initial nine months of last year, the consumption was over 83 billion kilowatt-hours.
Kazakhstan was slammed by Inter RAO due to its capped tariffs which was considered the reason behind scarcity of funds for investments required to modernize and update the generation volume as well as distribution network of the country. Moreover, earlier, electricity imports were limited in Kazakhstan.
Nur-Sultan’s lawmakers have come up with a bill to decrease the “uncontrolled use of electricity by ‘gray’ miners.” According to the new legislation, the opportunity will be reserved to mint digital coins exclusively for mining firms that are registered with AIFC, Astana International Financial Centre. In case the law is accepted, foreign entities could mine with domestically licensed data centers.
A few days back, Today NFT News reported, Kazakhstan is prepared to legalize cryptocurrency.