Moscow, Sunday, October 20, 2024- The Russian region of Buratiya, a rising Bitcoin mining hotspot, is set to receive a significant energy boost with a new thermal power plant slated for completion by 2029.
The revamped plant will provide both heat and electricity, helping the capital, Ulan-Ude, manage increasing energy demands, particularly exacerbated by a surge in crypto mining activities.
According to the state news agency TASS, the plant’s modernization is part of a larger $418 million project aimed at improving the region’s energy infrastructure. Buratiya has struggled with power shortages, a situation worsened by the growing presence of Bitcoin miners.
In June 2022, a transformer failure at the Gusinoozerskaya Thermal Power Plant left the region without power for several days, prompting renewed efforts to enhance energy stability.
The local government anticipates that the new power plant will create an energy reserve capable of supplying 300 MW to neighboring Mongolia. Buratiya’s Deputy Chairman, Yevgeny Lukovnikov, emphasized the importance of curbing unregulated crypto mining, noting that only two legal enterprises in the region are involved in Bitcoin mining. However, many miners operate illegally, contributing to the region’s energy shortages.
Despite the challenges posed by crypto mining, the Russian government sees potential in the industry.
Regions like Buratiya and Irkutsk are cracking down on illegal mining operations while also attracting investment to build modern data centers. Moscow has also introduced plans to tax industrial crypto mining, potentially using Bitcoin to engage in international trade.
