Russia’s Rosseti eyes Bitcoin mining helps promote local development and utilize surplus energy

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Rosseti intends to convert dormant power into revenue for Russia’s utility by recycling surplus energy through Bitcoin mining.

According to the local news agency TASS, Rosseti, Russia’s state-owned electricity company, is purportedly conducting an assessment of Bitcoin mining as a means of optimizing energy utilization in regions with excess capacity.

In regions with minimal energy demand, the power grid operator intends to establish mining infrastructure, according to the report. The company is of the opinion that this action would enhance energy efficiency and generate tax revenue, thereby promoting local economic development by utilizing unused energy resources.

Rosseti claimed that its sophisticated grid systems can effectively oversee mining operations, enabling the monitoring and optimization of energy consumption in real time. As part of its development strategy, the organization is also contemplating the implementation of an exclusive tariff structure for miners.

This method has the potential to optimize operations and manage demand in regions with abundant energy.

This action, according to observers, underscores the changing nature of Bitcoin mining’s function in the energy sector. Despite its frequent criticism for its high energy consumption, mining is demonstrating its capacity to integrate with renewable sources, stabilize infrastructure, and utilize surplus power. Bitcoin mining is a critical participant in contemporary energy discussions due to its adaptability.

In the interim, the initiative is consistent with the Russian government’s overarching objectives to incorporate cryptocurrency into the economy.

Russia has recently implemented a regulatory framework for crypto mining that categorizes digital assets as taxable property. Mining and trading revenue are subject to a 15% tax rate, despite the fact that crypto transactions are exempt from value-added tax.

These measures have incentivized businesses and individuals to adopt Bitcoin mining as an additional revenue source. The demand for industrial mining apparatus in Russia increased threefold in 2024 in comparison to the previous year.

In ten energy-constrained regions, Russia has implemented restrictions on Bitcoin mining, despite the recent increase in interest.

The objective of these seasonal restrictions, which will remain in effect until 2031, is to prevent grid congestion during periods of high demand. In the affected regions, mining activities will be prohibited annually from January to mid-March and from mid-November to mid-March.

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