Hydropowered crypto mining gets nod from Kyrgyz president: Report
The Kyrgyz Republic, a central Asian state bordering China, is reportedly growing its cryptocurrency mining powers with support of the local government.
Kyrgyz President Sadyr Japarov has given a nod to building a crypto mining farm at a hydroelectric power plant, Kyrgyzstan’s national news agency Kabar reported on July 27.
The government of Kyrgyzstan plans to spend up to $20 million to build a cryptocurrency mining facility at the Kambar-Ata-2 Hydro Power Plant.
According to the president, running a crypto mining farm will allow the government to avoid energy losses associated with non-used power from the power plant, the report said.
Since launching Kambar-Ata-2 in 2010, Kyrgyzstan has lost 6.8 billion kilowatt-hours (kWh) of energy due to this issue, Japarov reportedly said. By establishing the mining farm, the Kyrgyz government will be able to deploy the remaining energy wisely and bring benefits to the country’s budget, the president noted, stating:
The report somewhat contradicts recent energy-related news in Kyrgyzstan. On July 24, the Kyrgyz president announced a state of emergency in the energy sector of Kyrgyzstan, which is scheduled to start on Aug. 1, 2023, and expected to end on Dec. 31, 2026. According to official data, the emergency situation is caused by climate challenges, a low inflow of water into the Naryn River basin and the lack of generating capacity due to excessive growth of energy consumption.
In the latest report by Kabar, Japarov stressed that crypto mining will be tariffed at the highest rate available in Kyrgyzstan, though, or around 5 Kyrgyzstani soms ($0.057) per kW.
The press office of the Kyrgyz government didn’t immediately respond to Cointelegraph’s request for comment. This article will be
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