Abkhazia government blames energy crisis on rise in illegal crypto mining

Abkhazia continues to face an energy crisis. The head of the region’s national energy supplier recently blamed the problems on a rise in crypto mining activity.

According to Jam News, the Abkhaz government’s year-long ban on crypto mining has not been respected and enforced by local authorities, and miners continue to take advantage of the region’s low energy costs.

Ruslan Kvarchia, head of operations and technical management at Abkhazia’s official energy company Chernomorenergo, said: “The total capacity of mining equipment operating in our country is at least 40-45 MW, which will lead to the consumption of about 400 million kWh of electricity throughout the year, which is the majority of the projected electricity shortage in Abkhazia. The deficit for the remaining months of 2020 is expected to reach 704 million kWh.”

However, instead of tightening the screws on crypto miners further, local officials are considering another solution. They are considering lifting the ban and allowing all crypto mining activities in the area. According to the local government, allowing miners to operate in the open air can improve communication between energy suppliers, miners, and local governments. The government believes that lifting the ban will help strengthen supervision of mining facilities, thereby better controlling the power supply.