Russian Crypto Miners Could Turn to Renewable Power as Regions Prepare Bans

Russian crypto miners may ditch fossil fuels for renewable power in a bid to avoid regional bans, an energy industry insider claimed on December 30.

RIA Novosti reported that the claims came from Alexey Zhikharev, the Director of the Russian Renewable Energy Development Association.

Russian Crypto Miners: A Carbon-neutral Future?

Zhikharev said that the “business requirements for climate neutrality” in the crypto mining sector would grow in the near future.

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He said that now mining firms have become “full-fledged participants in the Russian industry,” it was inevitable they would start using renewable energy sources.

“With more and more industrial corporations implementing sustainable development strategies to decarbonize their products and turning to carbon-free generation, energy-intensive mining firms will also follow suit. Otherwise, each new token mined will need more emissions. And that will all have a negative impact on the climate.”

Alexey Zhikharev, Director, Renewable Energy Development Association

But a more pressing problem for Russian miners could be a series of regional bans, which came into force at midnight on January 1.

These bans are now in effect in 10 Moscow-controlled regions and will run until 2031. And there are suggestions further bans may follow in areas with strained power grids.

“Another 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. The ban encompasses a large portion of Russian territory.”

Zhikharev

The energy chief added that customers may be wary of buying coins from Russian miners if the latter remain dependent on fossil fuels.

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He explained that “market demand coins mined in climate-neutral facilities will grow.”

Zhikharev said that Russian crypto miners now use around 1% of the country’s total consumed energy.

Russian Renewables

At present, the association chief said, miners are almost entirely dependent on “inefficient carbon-intensive thermal power plants.”

And the sector’s carbon dioxide emissions “may already exceed 10 million tons per year,” he said.

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Per Ember, Russia’s renewable energy sector is dominated by Soviet-era hydroelectric power stations.

These provide the nation with about 17% of its total power, with biomass, wind farms, and solar power making up only a tiny fraction of the power mix.

Another 18% comes from the nation’s nuclear power plants. However, 64% comes from fossil fuels, per 2023 statistics.

Critics say that Russia’s power sector emissions are the fourth highest in the world. They also claim that the nation’s per capita emissions are almost double the global average.