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Kazakhstan estimates that a single mining farm requires the same amount of power as 24,000 homes.

October 23, 2021 - Around 3 mins mins to read

Kazakhstan government has assessed the amount of energy consumed by the country’s crypto mining business, which competes for electricity with other sectors of the economy and families. The government has also evaluated the extra supply required to satisfy the increased demand from mining farms and recommended a power rating cap for new projects.

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To explain why Kazakhstan is considering placing limitations on new cryptocurrency mining operations, the Ministry of Energy informed local media that data centers minting digital currencies consume 5 megawatts (MW) of power every hour. According to the agency, a single mining operation consumes an average of 3.6 million kilowatt-hours (kW) every month, which is equivalent to the usage of 24,000 houses.

With China tightening down on cryptocurrency miners this year, the Central Asian nation has become an appealing location for many mining companies due to its low energy costs. As a consequence, according to official data, power usage climbed by 7.4 percent in the first nine months of this year, reaching about 83 billion kilowatt-hours (kWh).

Officials in Nur-Sultan have previously blamed the increase on the country’s 50 mining farms. With a total project capacity of more than 972 MW, the present demand on Kazakhstan’s electricity distribution network is projected to be more than 693 MW.

Furthermore, electricity consumption by illicit mining operations is likely to have increased. According to the Energy Ministry, the excess consumption growth that may be linked to mining centers is approximately 1,050 MW, while the percentage of underground crypto miners is estimated to be between 250 and 450 MW.

The government would like to limit the capacity of new mining farms to 100 MW.

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Meeting the expanding demands of the mining industry would necessitate an increase in power output of at least 1,000 MW, which might occur over the next four to five years, according to the department. Magzum Mirzagaliev, Kazakhstan’s Minister of Energy, stated in early October that the government wants to construct power facilities with a combined capacity of 3,000 MW within the same time period.

To avoid further deterioration, the ministry recommends a 100-megawatt capacity restriction for new users connected to the electricity grid. The policy is likely to have an impact on projects in the nation that are constructing crypto mining farms.

This isn’t the only piece of bad news for cryptocurrency miners and investors. This month, MPs introduced legislation to require mining companies operating in the nation to register. Concerned about the sector’s rising energy usage, a group of Mazhilis MPs has also asked for the introduction of increased power prices for firms involved in the extraction of digital currencies.

Patrick

Coincu News

Bitcoin

Kazakhstan estimates that a single mining farm requires the same amount of power as 24,000 homes.

Kazakhstan government has assessed the amount of energy consumed by the country’s crypto mining business, which competes for electricity with other sectors of the economy and families. The government has also evaluated the extra supply required to satisfy the increased demand from mining farms and recommended a power rating cap for new projects.

cryptocurrency mining farm 5bfd7ab046e0fb0083fd38c2 2

To explain why Kazakhstan is considering placing limitations on new cryptocurrency mining operations, the Ministry of Energy informed local media that data centers minting digital currencies consume 5 megawatts (MW) of power every hour. According to the agency, a single mining operation consumes an average of 3.6 million kilowatt-hours (kW) every month, which is equivalent to the usage of 24,000 houses.

With China tightening down on cryptocurrency miners this year, the Central Asian nation has become an appealing location for many mining companies due to its low energy costs. As a consequence, according to official data, power usage climbed by 7.4 percent in the first nine months of this year, reaching about 83 billion kilowatt-hours (kWh).

Officials in Nur-Sultan have previously blamed the increase on the country’s 50 mining farms. With a total project capacity of more than 972 MW, the present demand on Kazakhstan’s electricity distribution network is projected to be more than 693 MW.

Furthermore, electricity consumption by illicit mining operations is likely to have increased. According to the Energy Ministry, the excess consumption growth that may be linked to mining centers is approximately 1,050 MW, while the percentage of underground crypto miners is estimated to be between 250 and 450 MW.

The government would like to limit the capacity of new mining farms to 100 MW.

191D94F7DF34F67746ECEE7493EEE90E782015D10AFA055E681C182407613D97

Meeting the expanding demands of the mining industry would necessitate an increase in power output of at least 1,000 MW, which might occur over the next four to five years, according to the department. Magzum Mirzagaliev, Kazakhstan’s Minister of Energy, stated in early October that the government wants to construct power facilities with a combined capacity of 3,000 MW within the same time period.

To avoid further deterioration, the ministry recommends a 100-megawatt capacity restriction for new users connected to the electricity grid. The policy is likely to have an impact on projects in the nation that are constructing crypto mining farms.

This isn’t the only piece of bad news for cryptocurrency miners and investors. This month, MPs introduced legislation to require mining companies operating in the nation to register. Concerned about the sector’s rising energy usage, a group of Mazhilis MPs has also asked for the introduction of increased power prices for firms involved in the extraction of digital currencies.

Patrick

Coincu News

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