Illegal Miners Push Abkhazia’s Energy Sector to Crisis

The authorities in Abkhazia have declared an energy crisis in the republic, attributing it partly to illegal cryptocurrency mining, reports TASS.

The region is currently experiencing an emergency drop in water levels at the Inguri hydroelectric power station, which could lead to rolling blackouts and necessitate additional electricity purchases.

Since 2016, energy consumption in Abkhazia has increased by 1 billion kWh, primarily due to ineffective measures against mining.

“We are on the brink of an emergency depletion, and part of the republic may be left without electricity. Due to the drop in water inflow levels, we have requested to purchase more electricity, which will increase electricity costs,” said Temur Dzhindzholia, CEO of Chernomorenergo.

According to him, up to 98% of illegal consumption is due to household mining in residential buildings, with such users consuming 40.5 MWh of electricity daily, accounting for 60% of the existing deficit.

“If it weren’t for mining, the situation would be better. We need to develop a solution involving searches in homes,” added Dzhindzholia.

Acting Prime Minister Valery Bganba called for intensified efforts against cryptocurrency mining by identifying miners through spikes in energy consumption.

“If the situation does not change, I will be forced to ask the acting president to declare an energy emergency,” he stated.

According to current statistics from the Ministry of Internal Affairs of Abkhazia, 1097 units of illegal equipment have been seized in 2024, with no large farms detected.

In 2022, the authorities in Abkhazia approved special tariffs for miners.

Since November 2023, the Sukhumi administration has proposed immediately disposing of seized devices. In May, the capital’s authorities conducted a series of successful raids to identify illegal bitcoin miners.