Russian Economists Propose Disconnecting Miners During Energy Shortages

The Higher School of Economics (HSE) has proposed forcibly disconnecting large-scale miners from electricity to address energy shortages in certain Russian regions, according to Izvestia.

The initiative suggests categorizing cryptocurrency mining data centers as a separate group of consumers, which could be restricted from electricity supply for up to 500 hours annually (approximately 21 days).

The idea has already garnered support from the Industrial Mining Association and the State Duma’s Energy Committee. Representatives of the latter stated that “miners are quite undemanding and can be disconnected from the grid without much trouble if warned in advance.”

According to HSE economists, they sought an alternative to the Ministry of Energy’s proposal to significantly increase tariffs for cryptocurrency mining enterprises. Experts believe that price discrimination would drive players underground.

However, the ministry itself has viewed the proposal skeptically and is not currently considering it. The Ministry of Energy also noted that virtually all mining could be classified as a grey area, “since it lacks a business activity code and is not subject to taxation.”

Back in autumn 2023, the Russian government’s plans to raise electricity transmission tariffs were made known. The primary focus will be on Buryatia, the Trans-Baikal Territory, and the Irkutsk region. The Ministry of Energy aims to encourage miners to relocate to regions with surplus capacity.

Cryptofarm owners criticized the ministry’s proposal, attributing the situation to poor energy system development planning.