Russia's Crypto Ban Slashes Siberian Power Use by 300 MW

The Russian Energy Ministry has announced that a recent ban on cryptocurrency mining in several Siberian regions has led to a significant reduction in energy consumption, easing pressure on the local power grids. According to the ministry, the ban, which came into effect on January 1, 2025, has resulted in a decrease of over 300 MW in energy consumption in the region.

The ministry attributed this reduction to the ban, which has helped Siberian power providers avoid imposing restrictions such as rolling blackouts during the winter months when electricity demands are typically highest. However, some Siberian officials have expressed concerns that the ban is not sufficient and have called for year-long bans in certain parts of the region.

Despite the ban, some reports suggest that cryptocurrency mining is still growing in Siberia and beyond. The Siberian power firm Irkutskenergosbyt reported a 1% increase in household electricity consumption in the first month of this year compared to January 2024 figures. Additionally, Russian data compilers claimed that the nation's Bitcoin mining sector grew by 7% in 2024.

Meanwhile, Russian industrial crypto mining enterprises remain active in the Irkutsk region, with Bitcoin (BTC) being the favorite coin among miners, accounting for 90% of industrial capacity. Other coins mined by industrial miners include Litecoin (LTC), Kaspa (KAS), Ethereum (ETH), and Monero (XMR).

Experts have differing opinions on the success of the ban. Valery Petrov, a member of the expert council of the Russian Association of Cryptocurrency and Blockchain (RACIB), believes that the legalization of crypto has helped the sector but also notes that new differentiated tariffs for crypto mining have significantly limited business growth. Oleg Ogienko, the Deputy General Director for Communications at BitRiver, cast doubt on the 7% growth figures and suggested that crypto miners could potentially consume up to 11 GW of power in the next three to five years.

The Russian Energy Ministry has also expressed its desire to create a national directory of equipment used for cryptocurrency mining to help track legal miners and assist power companies in combating illegal and quasi-legal mining activities. The ministry plans to hold regular meetings to discuss a new regulatory framework for crypto mining and assess the efficacy of the ban in various Russian regions.