The governor of a Russian province, who had just slammed crypto miners a few weeks ago, has now offered to assist them in setting up shop in the region and to provide support for those mining tokens.
Irkutsk Region Governor Igor Kobzev requested assistance from Russian Deputy Prime Minister and key power sector policymaker Alexander Novak in fighting an “avalanche-like spike in energy consumption” in Irkutsk. Which is quickly becoming a mining hotspot, as reported in October.
In October, Kobzev said that underground mining had already increased tenfold from the previous year’s figures. And that Irkutsk’s networks were struggling to cope with the increased load. He blamed power outages in suburban areas squarely on underground crypto miners, claiming that many were secretly operating.
The Russian government has responded by stating that it will work to establish legal definitions for mining-related terms. And that miners will be required to pay slightly higher electricity rates than ordinary citizens. And this appears to have satisfied the Governor, who now appears to be a pro-mining supporter.
Mining should be classified as “entrepreneurial activity,” according to Kobzev, according to Interfax. He mentioned assigning them specific locations for their “industrial activity.”
According to the news agency, he said:
“As you know, I turned to the Deputy Prime Minister of the Russian Federation. And [I] consider [mining] to be an entrepreneurial activity. The government has its own opinion on this matter. It looked at [our complaints] and supported us.”
In fact, it appears that as long as the miners are willing to cooperate with the authorities, Kobzev will support them.
Networks in Russia may face significant challenges
As Russia’s winter begins, networks may face significant challenges. In addition, the majority of residents in the Irkutsk region rely on electricity to heat their homes. With electricity derived from sources such as thermal power and hydroelectric energy.
However, according to Kobzev, if miners work directly with power companies. They can actively reduce the load on urban distribution networks.
“We are ready to provide miners with platforms for industrial mining. For example, in Ust-Ilimsk. But this must be done in an orderly way, so that they make use of separate lines that will not cause a strain on [town and city] networks.”
The 3,840 MW Ust-Ilimsk Hydroelectric Power Station, as well as a thermal power plant, are located in the town of Ust-Ilimsk. Built during the Soviet Union.
The province traversed by the River Angara. Which also serves as a source of power for two other major hydroelectric plants: the 4,515 MW Bratsk Hydroelectric Power Station. And the 687.1 MW Irkutsk Hydroelectric Power Station.