Alternative Mining Solutions Amid Regional Restrictions in Russia

In 2024-2025, several Russian regions implemented restrictions on electricity use for mining. In April, the Russian government signed a decree banning cryptocurrency mining in the southern Irkutsk region until 2031. The Russian Ministry of Energy also plans to extend similar measures to Zabaykalsky Krai and Buryatia.

Alongside regional restrictions, cryptocurrency mining activities in Russia were legalized in 2024. However, legalization did not resolve the issue of high electricity costs for traditional mining.

According to Pavel Volkov, founder of the company “Power Systems”, in the current situation, autonomous generation using natural or associated petroleum gas (APG) becomes an economically viable solution.

A Strategic Solution

Gas piston or gas turbine units convert the energy from gas combustion into electricity directly at the extraction site or near the supply source. The generated electricity is used to power mining equipment.

The company “Power Systems” creates energy centers for mining (or “crypto factories”) based on these technologies.

“The launch of own generating capacities is being considered by an increasing number of market participants not just as an alternative, but as a strategic solution. This approach allows for control over electricity costs and significantly reduces dependence on external regulatory factors,” comments Pavel Volkov.

The key advantage of this approach is independence from restrictions on consumption from general power grids. Since gas energy centers generate electricity independently, rather than drawing power from regional systems, they are not subject to decrees aimed at reducing the load on centralized networks.

“This ensures uninterrupted operation of mining equipment 24/7 without the risk of sudden shutdowns or forced power limitations,” states Volkov.

Economics of Gas-Based Mining

Besides circumventing regional bans, the cost of bitcoin mining can be reduced by up to 40% compared to traditional data centers using grid electricity.

“This is achieved through significantly lower electricity costs. The cost of 1 kWh produced by own gas generation is about 3.80 rubles, which is 1.5-2 times lower than industrial electricity tariffs from the grid — 5-8 rubles per kWh and higher,” claim “Power Systems”.

Such conditions allow “crypto factories” to demonstrate profitability of 44% annually and ensure a return on investment from 23 months.

The company offers turnkey solutions from design to launch and technical maintenance. A “crypto factory” includes gas generator units, mining equipment, cooling, and monitoring systems.

“This is a fully autonomous business created for you. You get ready infrastructure, a transparent income model, and profit from day one. We choose the appropriate model together, select a site, process documents, deliver equipment, and launch the facility,” note the company.

“Power Systems” is the official dealer of the Weichai group in Russia — one of the world’s leaders in the production of gas piston engines. This ensures access to technologies at special prices.

The company has already implemented 13 projects in the Penza, Orenburg, and Saratov regions, as well as in Khanty-Mansi Autonomous Okrug and Yamalo-Nenets Autonomous Okrug. By 2028, the project team plans to reach 1 GW of total “crypto factory” capacity and proceed to an IPO.

Earlier, ForkLog published an article on how the small mountainous state of Bhutan taught the world “green” mining.