2019 Starts With Power Cut Outs for Crypto Miners in Abkhazia

According to a post on Facebook, the government of Abkhazia has cut off power to 15 crypto mining farms operating within its borders. In a bid to prevent blackouts Chernomorenergo the country’s electricity firm went ahead and cut power supply to the 15 miners.

Cutting off power comes after Chernomorenergo issued warnings of power blackouts during winter. The latter will cause a massive drop in temperatures leading to less to a reduction in overall electricity generated by the hydropower plant. The fall in power generation will lead to local households lacking power. Besides Chernomorenergo warning of blackouts, it also called on the government to put legal frameworks. Acting on the calls from Chernomorenergo to put in place legal structures, the Abkhazian government approved a new law which banned cryptocurrency mining.  Furthermore, the law gives power to several firms including Chernomorenergo to close firms that don’t adhere to the ban.

Power Consumed By The 15

Although 15 crypto mining farms have no power at the moment, it is saving Chernomorenergo 8,950 kilowatt-hour (kWh). The 15 crypto mining firms consumed the latter amount which is enough to power 1,800 Abkhazia homes. Although the mining farms at the moment don’t have power according to Chernomorenergo, the owners understand the utility firm decision.

Across the Globe

Crypto mining consumes a lot of power and with many people operating mining farms worldwide its forcing governments come up with measures to control power consumption. For instance, in the state of Washington in Chelan County Public Utility District authorities are drafting new pricing structures to cater for crypto mining. The county is aiming to pass down the high cost of electricity brought about by crypto mining to the miners. Moreover, the authorities believe the new structure will help protect the interest of their investors.

Alongside Washington, Norway has taken a different approach by getting rid of tax incentives granted to crypto mining. The government halted the electricity subsidies awarded to Bitcoin mining farms within its borders. Besides the above representatives from Lars Haltbrekken, the Socialist Left Party (SV) are of the opinion that the cryptocurrency industry is the dirtiest industry. And according to them, Norway can’t continue to provide a conducive environment through tax incentives for such dirty sector.

While Abkhazia has cut power to crypto mining farms, the measures in place are temporary. Moreover cutting power to these mining farms will help the country achieve its goal of preventing any blackouts.