Energy consumption by Russian miners is up 20 times in 5 years

The share of cryptocurrency mining ranges from 0,64% to 2% in the structure of energy costs

16.08.2022 - 14:25

874

2 min

What’s new? The amount of electricity consumption for mining in Russia has increased almost 20 times in 5 years: from 64,05 MW in 2017 to 1245,34 MW in 2021. The growth of energy consumption with proper regulation and legalization of cryptocurrency mining will allow the development of related industries and further digitalization of the economy, experts from mining equipment importer Intelion Data Systems said.

What else do the experts say? The amount of electricity consumption for mining ETH, LTC and other assets may additionally be about 40-50% of the electricity consumption for BTC mining. Since 2017, the annual growth rate for all cryptocurrencies has been at least 150%.

Due to the presence of nuclear power plants, hydropower facilities, as well as reserves of free capacity, cryptocurrency mining in Russia can be as efficient as possible. The head of Intelion Data Systems, Timofey Semenov, noted:

“The growing interest in energy-intensive blockchain computing in the context of a significant surplus of energy resources in a number of Russian regions certainly opens up new opportunities not only for participants in this market, but also for a significant number of related industries and business areas.”

The share of cryptocurrency mining ranges from 0,64% to 2% in the structure of energy consumption in Russia. This figure can be compared to the share of consumption by agriculture, as mentioned by the Deputy Industry and Trade Minister Vasiliy Shpak, proposing to recognize mining as an industrial activity or a separate industry.

Earlier Intelion Data Systems called the most popular regions for mining in Russia. In 2021 they were Moscow, the Moscow region, Karelia, Buryatia, as well as the Sverdlovsk, Murmansk and Irkutsk regions, the Krasnoyarsk Territory and the Republic of Khakassia. Experts believe that Russia has all the necessary conditions to locate the plants, including low electricity prices and a well-developed energy infrastructure.

Author: