Kazakhstan facing electricity shortages. And the whole blame is going towards the crypto mining activities, which are increasing in Kazakhstan after China’s crypto ban.
After the announcement of crypto trading and mining ban by China, Many crypto mining firms started to move to those countries where crypto mining situations are favourable like cheap electricity and better government regulation that allow mining of crypto with full legality without any problem. Kazakhstan was one of the countries during the China ban, which welcomed many crypto mining firms, because Kazakhstan officials believed that this was an opportunity given by China.
Reports say that electricity demands in Kazakhstan is sugredby around 7% over last year. And this is a big indication that the demand for electricity is Increasing in Kazakhstan.
However a recent report covered by the Kazakhstan Today, which claimed that crypto mining operations are not responsible for the electricity shortage over other operations in the nation. And also crypto mining operations are a better option to generate revenue by spending cheap electricity and selling assets even in abroad.
Magzum Mirzagaliev, Energy minister of Kazakhstan, stated about this concern raised by the grid operators, in the local Media news and said
“We need to make a number of decisions. First, we must be able to ensure that system operators have the right to limit or reduce the consumption primarily of mining data centers at a time when there may be a shortage of electricity”
Further Magzum asserted that crypto mining operations are an opportunity but this industry needs to evolve perfectly. And we need to work on the generation of electricity, especially through sustainable green soucess.
According to sources and reports, the Kazakhstan government aims to produce 6% of the mix energy they produce through green & renewable sources and 15% at least by the next 5 years. But for now there are huge chances that the government of Kazakhstan may increase charges on electricity usage for the mining operations.