Russian Power Giant Rosseti Embraces Bitcoin Mining to Monetize Excess Capacity
Rosseti Group Russias leading electric grid operator has announced its interest in becoming an operator for hosting mining infrastructure.
The company told TASS that this initiative focuses on utilizing underloaded power supply centers, improving capacity utilization, and fostering economic growth.
Rosseti Targets Crypto Mining to Use Idle Power
According to the report, Rossetis position as the largest grid company in the country allows it to coordinate the placement of mining facilities. The company also said it is keen on connecting electricity consumers to power supply centers with low utilization prospects.
The main objective behind this approach is to optimize unused capacity, enhance tariff revenues, and stimulate regional economic growth through increased tax contributions.
Discussions are currently underway regarding Rossetis participation in the mining industry and strategies to boost demand at underutilized centers. The company is considering introducing a specialized tariff system to manage demand. Additionally, it boasted its advanced infrastructure, which includes switching equipment and systems capable of controlling mining-related loads to maintain energy reliability across regions.
Rossetis latest initiative is part of the companys broader strategy to modernize the electric grid and align its operations with emerging industries.
Kommersant previously reported that Andrei Ryumin, head of Rosseti Group, had written to Prime Minister Mikhail Mishustin, seeking authorization for Rosseti to coordinate the placement of mining centers.
Russias Bitcoin Mining Ecosystem
President Vladimir Putin approved a law last August to establish regulatory oversight for cryptocurrency mining. According to the legislation, only officially registered companies and individual entrepreneurs are authorized to conduct large-scale mining operations in Russia.
However, due to rising energy consumption concerns, the Russian government extended its winter ban on local cryptocurrency mining to six years. Initially introduced as a seasonal pause, the ban now runs from January 1, 2025, to March 15, 2031. Impacted areas include Dagestan, Ingushetia, Kabardino-Balkaria, and Chechnya, among others, with additional restrictions in parts of Irkutsk, Buryatia, and Zabaikalsky Krai during peak energy periods.
Crypto mining has strained Russias energy infrastructure, consuming approximately 16 billion kilowatt-hours annually, accounting for 1.5% of the countrys energy use. This has prompted the government to roll out initiatives to balance consumption and address interregional electricity payment disparities. High usage in mining regions, combined with harsh climates, has created challenges in energy distribution.
Notably, Russia recently legalized crypto mining, introducing mandatory registration to monitor miner activities.
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Text source: CryptoPotato
