Mining in Russia: power engineers called for higher tariffs

Mining in Russia: power engineers proposed to introduce higher tariffs for volumes “in excess of reasonable for household consumption,” writes Kommersant. In their opinion, low tariffs for the population benefit from crypto-farms in residential buildings.

Industry experts link the growth of electricity consumption in the country with the boom of mining with the help of subsidized electricity tariffs.

“The Community of Energy Consumers” proposes setting a maximum bar for household consumption of 7,000 to 7,500 kWh per month, which is 20 to 25 times the average for homes and apartments. The newspaper’s sources noted that the Federal Antimonopoly Service is already developing a corresponding regulatory act.

Mining in Russia is developing fastest in regions with low electricity prices

According to Rosseti, residential electricity consumption is growing by 5% for the second year in a row (111 billion kWh in 2020 and 117 billion kWh in 2021). At the same time, the share of the category with consumption above 600 kWh per month has reached 40% of the volume, the source noted. Power engineers attribute this to mining in Russia.

Mining in Russia is developing fastest in regions with low electricity prices, especially in the Irkutsk Region, where the tariff for rural residents is 0.86 rubles per 1 kWh. “Irkutskenergosbyt” revealed more than 1000 illegal farms in the region. Igor Dorofeev, president of the Data Center Association, generally estimates the volume of legal mining in Russia at 600-700 MW, while the gray one (in houses, garages, sheds and apartments), according to the publication’s sources, may exceed 300-400 MW.