Georgian authorities seek to curb illegal mining amid electricity shortage

The Georgian government and the energy-distribution company Energo-pro Georgia are addressing the problem of illegal cryptocurrency mining in Svaneti. The issue was raised by Natia Turnava, Georgia’s Minister of Economy, according to Echo of the Caucasus.

Over the past year, electricity consumption in Mestia has risen sharply due to mining farms. The widespread mining of cryptocurrencies in the region is linked to low business tariffs and free electricity for local residents.

Due to overloaded networks, authorities introduced a rotating electricity-supply schedule.

Turnava described illegal electricity consumption, especially in the case of so-called household mining, as unacceptable.

According to her, authorities are working with the local self-government and Energo-pro Georgia, which supplies electricity to Svaneti, to implement a phased solution to the issue.

At the same time, Turnava does not see the need to involve the police to identify mining farms.

In late December, residents of Mestia held protests demanding the closure of cryptocurrency mining farms and accusing authorities of shielding the miners.

Earlier, Energo-Pro Georgia halted electricity supply to a Mestia mining farm.

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