The Irkutsk region of eastern Russia has been plagued by power outages for some time, blamed on native crypto miners. Electricity consumption in the region grew by 108 percent last year, according to the Irkutsk Electric Grid Company (IESC). Local officials have raided the region and reportedly uncovered 1,100 cases of “grey mining”. The term refers to crypto mining from home, where equipment is set up in apartment basements, garages, residential buildings and on balconies.
“21 electrical installations suspected of mining cryptocurrency were identified in Irkutsk. Mining equipment was installed on balconies, in residential buildings and basements of apartment buildings,” Irkutskenergosbyt, the region’s electricity supplier, said in a message.
Often referred to as the “crypto mining capital of Russia,” electricity costs in Irkutsk are six times lower than the average price of electricity in other parts of the country. Therefore, residents of the region often use their subsidized home electricity to mine cryptocurrencies, according to a report from Bitcoin.com.
Details about the measures being considered to control crypto mining activities in Irkutsk remain unclear so far.
According to Cambridge researchers, mining Bitcoin consumes approximately 121.36 terawatt hours (TWh) of energy per year.
The crypto mining process is also associated with large-scale carbon emissions, which is a concern amid ongoing environmental concerns.
Between January 1, 2016 and June 30, 2018, mining operations for four major cryptocurrencies released an estimated 13 million tons of carbon dioxide, a research report claimed last year.
Last year, after China banned all crypto-related activities, Tesla chief Elon Musk noted that electricity shortages could be a major factor behind China’s decision.
“A lot of southern China is currently experiencing random power outages as the demand for power is higher than expected. Crypto mining may play a role in that,” Musk had said at the time.
By November 2021, the Electric Reliability Council of Texas (ERCOT) had estimated a fivefold increase in energy taxes to support crypto mining and data centers.
The revelation came after residents of the US state of Texas complained that the crypto mining processes were draining the region’s power.
