Alexey Zhikharev, director of the Renewable Energy Development Association (REDA), revealed that cryptocurrency mining accounts for almost 1% of Russia’s energy consumption. He stated that as the industry grows, miners will increasingly employ renewable energy sources.
Expert Insight: Cryptocurrency Mining Accounts for Nearly 1% of Russia’s Energy Resources
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
Russia’s Cryptocurrency Mining Energy Expenditure Nears 1% of the Nation’s Total
The growth in Russia’s cryptocurrency mining industry energy expenditure will lead to changes in how these activities are conducted and the nature of the energy used. Alexey Zhikharev, director of the Renewable Energy Development Association (REDA), believes that the recent legalization of the mining industry in Russia will make miners comply with current corporate environmental requirements.
In an interview with Ria Novosti, Zhikharev stressed that miners consume almost 1% of the country’s energy. This, and the surge in popularity of the activity lead the charge in energy demand growth.
He stated:
With more and more industrial corporations implementing their sustainable development strategies to decarbonize their products and betting on carbon-free generation, energy-intensive miners will also follow suit. Otherwise, each new unit of cryptocurrency will lead to increased emissions and negatively impact the climate.
Russia’s climate doctrine acknowledges the dangers of global warming and aims for carbon neutrality by 2060. It also includes the term ‘technological neutrality,’ which promotes the adoption of nuclear energy as an alternative to other dirtier fuels, such as coal.
Zhikharev also stated that the recent seasonal cryptocurrency mining ban in some regions has a role in this move towards renewables. “The driver for Russian miners to switch to their own renewable energy generation could also be the government’s new ban on their activities in energy-deficient areas, which includes a good portion of Russia’s territory,” he stressed.
While the government states that the mining bans in several regions are based on energy scarcity, other sources suggest these might be related to the energy subsidies applied to certain areas. Nonetheless, these measures would not affect miners generating their energy, and renewables could be a key element in maintaining 24/7 operativity.
Read more: Russia Enacts Ban on Crypto Mining Operations in 10 Regions, Hints at Expansion
