Rosseti Group, Russia’s power grid company, reported losses exceeding 1.3 billion rubles – which is worth around $14.2 million – in 2024 due to unauthorized cryptocurrency mining operations, also known as “black” mining firms.
As per a report by state-owned news agency TASS, damages were widespread across the company’s electrical networks.
Illegal Mining Strains Russia’s Energy Grid
The most significant impact was recorded in the North Caucasus region, which amounted to over 600 million rubles. The Novosibirsk grid suffered losses of 400 million rubles, while the Center and Volga region suffered damages amounting to 120 million rubles.
The company highlighted the largest individual case in Novosibirsk, where an operator ran approximately 3,200 mining devices, illegally drawing electricity on an industrial scale and causing an estimated loss of 197 million rubles ($2.2 million).
Rosseti stated that crypto-mining operations contribute to power grid congestion, leading to low voltage issues that can harm electrical appliances. So far, authorities have intercepted 130 instances of unauthorized power use, with more than 40 cases under criminal investigation, potentially leading to prison sentences.
Monetizing Excess Capacity By Mining Bitcoin
While unauthorized crypto mining has drained Rosseti’s resources through electricity theft, the group announced exploring cryptocurrency mining as a way to optimize underutilized power capacity just last month. The company said that its initiative aims to use idle power supply centers efficiently, boost tariff revenues, and contribute to regional economic growth through tax revenue.
Given Rosseti’s extensive grid network, it has the capacity to coordinate mining infrastructure placement and connect energy consumers to underloaded power centers. Discussions are underway about the company’s potential entry into the mining industry, including strategies to stimulate demand at these sites. One key aspect under consideration is a specialized tariff system to regulate energy use efficiently.
Rosseti also emphasized its advanced energy infrastructure, which includes modern switching equipment and load management systems designed to ensure power grid stability. This move aligns with the company’s broader goal of modernizing Russia’s electric grid and integrating emerging industries.
Additionally, Kommersant had earlier reported that Rosseti’s CEO, Andrei Ryumin, has approached Prime Minister Mikhail Mishustin for approval to oversee the development of mining centers. If granted, this initiative could position Rosseti as a major player in the crypto-mining sector, leveraging its infrastructure to turn excess electricity into a profitable venture while maintaining grid reliability.
Read the full article here