Russia's largest state-owned power grid operator, Rosseti, is set to support Bitcoin mining initiatives by utilizing its low-load power plants. This development emerges as part of efforts to maximize the use of underutilized energy capacity and generate supplementary revenue streams.
According to state-run news agency TASS, Rosseti sees this initiative as beneficial for optimizing energy resources. The company issued a translated statement, stating, "Rosseti Group, as the largest power grid company in Russia, can act as the operator to coordinate the establishment of mining infrastructure." This assertion highlights Rosseti's role as a facilitator of energy supply for Bitcoin miners.
Rosseti intends to connect power consumers, particularly Bitcoin miners, to energy facilities with low loading prospects. Company officials claim this approach will not only improve the usage of excess capacity but also bolster tariff revenues, thereby supporting regional economic development through tax contributions.
Further initiatives may include the introduction of special tariffs aimed at managing demand efficiently and encouraging increased mining operations. This potential shift follows recent legal modifications introduced by President Vladimir Putin, which allow businesses and individual entrepreneurs to initiate cryptocurrency mining once formally registered on the national list of miners.
Stemming from these regulatory changes, Bitcoin mining activities have gained momentum within Russia. A recent law, which took effect at the end of November, exempted mining operations from value-added tax, leading to soaring demands for mining equipment. Reports indicate such demand surged threefold during the fourth quarter of 2024.
Yet, amid this enthusiasm for Bitcoin mining, concerns have arisen over the pressure exerted by miners on local power networks. The Kremlin sounded alarms back in November, warning of potential energy crises if this sector remains unchecked. Consequently, the government imposed restrictions on crypto mining in energy-scarce regions such as Dagestan, Chechnya, and Ingushetia, as well as certain areas within Irkutsk, Buryatia, and Zabaykalsky Krai, particularly during peak demand periods.
Despite these challenges, Rosseti's commitment to facilitating Bitcoin mining through low-load power plants stands as a significant indicator of how the Russian energy sector is adapting amid the growing cryptocurrency market. By balancing regulatory support with concerns about energy consumption, Rosseti hopes to create sustainable opportunities for economic development.