Buratiya, a Russian Bitcoin mining hotspot, is set to receive an energy upgrade with the introduction of a revamped thermal power plant before the end of 2029. The new power plant will not only generate heat but also produce electricity, creating a power reserve in the region. This upgrade aims to help deal with the increasing load on the power grid in Ulan-Ude, the capital of Buryatia, which has been attributed to the rise in crypto mining activities.
President Vladimir Putin highlighted the strain on power grids in Buratiya due to the surge in BTC mining activities. The local government plans to add two more power units to the existing Gusinoozerskaya TTP plant to provide additional power reserve. With an investment of over $418 million, the plant aims to modernize its infrastructure and potentially provide 300 MW of excess power to neighboring Mongolia.
Despite being a Bitcoin mining hotspot, Yevgeny Lukovnikov, Deputy Chairman of the Buryatia Local Government, suggested that most Bitcoin miners in the region operate illegally. Lukovnikov emphasized the need to regulate crypto mining activities to prevent excessive power consumption and its impact on the region. While some regions like Irkutsk have taken a tough stance on miners, others like Buryatia have a more nuanced approach, balancing the presence of miners with the need to manage power resources efficiently.
The Russian Ministry of Energy reported energy deficit problems in traditional mining hotspots like Irkutsk due to the development of mining operations. The ministry highlighted the challenges faced in providing reliable power supply in regions like Buryatia, leading to concerns raised by President Putin about the impact of mining activities on essential services. Despite efforts to limit and control mining activities, the region continues to grapple with the repercussions of unchecked power consumption by miners.
In response to the increasing demand for power due to mining activities, the local government in Buryatia is investing in modernizing its power infrastructure to ensure a stable power supply. The plans to bring the TPP-2 station online date back to the late Soviet era, indicating a long-standing effort to enhance energy capabilities in the region. With the construction of new power units and the revitalization of the existing thermal power plant, Buratiya aims to address the power grid’s strain caused by the growing crypto mining industry.
As Russia’s crypto pivot continues, regions like the Komi Republic have also announced plans to build new crypto mining data centers to cater to the industry’s needs. This trend reflects the country’s evolving stance on cryptocurrency mining and the potential economic benefits it can bring. By investing in state-of-the-art data centers and regulating mining activities, Russia aims to leverage the growing interest in cryptocurrencies to strengthen its position in the global market and ensure sustainable economic growth in the long run.
