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HomeNewsHome cryptocurrency mining in Russia blamed for power outages in Irkutsk region
Home cryptocurrency mining in Russia blamed for power outages in Irkutsk region

Home cryptocurrency mining in Russia blamed for power outages in Irkutsk region

Last updated 5th Aug 2022
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Russians who mine cryptocurrencies at their properties have been held responsible for power outages experienced in Irkutsk. The problems with electricity supply in the region have become frequent-this region maintains the lowest power rates in Russia. Subsidized energy has transformed the Bitcoin mining industry into a kind of revenue for some local people. 

Electricity consumption goes up amid unfold of Home Crypto Mining in Irkutsk

Irkutsk’s power grid drivers have faced an adding number of blackouts. The area and megacity are seeing a conspicuous rise in power demand, straining the distribution network. According to original officers, home miners who produce digital currencies in their apartments, basements, and garages are to condemn.

They are presently proposing various strides to address the troubles out of the raising situation. As per the Russian business paper Kommersant, specialists plan to expand the limit of the conveyance network in home cryptocurrency mining in Russia blamed for power outages in Irkutsk region.

In December, there has been either planned or emergency power blackout. The Irkutsk Electric Grid Company (IESC) explained. “Despite the warm weather in November, the load increased by almost 40% compared to last year. The significant loads on the power networks and the growing number of outages are associated with the activities of miners.”

IESC underlined that coin stamping is very energy intensive as the equipment works nonstop. Engineers caution that the current electrical organizations in towns and urban areas are not intended for the steady, “modern” load that the mining equipment makes. The organization has been compelled to cut off power supply in many areas and introduce electrical cables with higher limit.

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Irkutsk recorded 1,100 cases of ‘gray’ crypto mining 2021

Utilities in Irkutsk have put efforts to locate the mining facilities that are causing the rise in electricity consumption. During the crackdown, inspectors found out over 1,100 “gray” mining incidents. “In the region, 21 electrical installations suspected of cryptocurrency mining were identified. The miners installed their equipment on balconies, in residential premises and basements of apartment buildings,” Irkutskenergosbyt announced.

A recent report shows that Irkutskenergosbyt utility has launched 85 lawsuits against people involved with home crypto mining with claims totaling 73.3 million rubles (over $980,000). It has won nine legal battles already, and expects to receive 18.7 million rubles ($250,000) in compensation.

Calls are mounting among officials in Moscow and regions like Irkutsk to recognize mining as an industry task, present upper electrical energy charges for crypto excavators, and expense them. An operating workforce is working on regulatory proposals for different crypto-related measures.

Walter Akolo

Walter Akolo

Walter is a writer from Nairobi, Kenya. He covers the latest news on the cryptocurrency market and blockchain industry. Walter has a decade of experience as a writer.