Abkhazia Govt Cuts of Crypto Mining Power
January 2, 2019 1:03 pm
The Republic of Abkhazia is looking to cut down on electricity consumption amidst concerns. Chernomorenergo RUE, the state electric utility company announced that it is cutting power for multiple cryptocurrency mining farms. This announcement was made on December 31st via Facebook.
According to the announcement, Chernomorenergo has cut down the electricity for 15 mining facilities. Their combined consumption is about 8.950 kilowatt-hours (kWh), this is equivalent to the electric consumption of 1,800 households. These steps were taken as a part of “temporary measures to limit the consumption of electricity by certain categories of subscribers.”
Chernomorenergo has asked the mining farm owners to understand and cooperate.
Countries across the globe have shown rising concerns amidst the electricity consumption that cryptocurrency mining demands. Back in November 2018, Norway effectively ended electricity subsidy for Bitcoin (BTC) mining facilities. Lars Haltbrekken, Norway’s parliamentary representative for the Socialist Left Party (SV) said
“Norway cannot continue to provide huge tax incentives for the most dirty form of cryptocurrency output […] [Bitcoin] requires a lot of energy and generates large greenhouse gas emissions globally.”
The Chelan County Public Utility District, Washington even presented a revamped pricing structure for cryptocurrency mining as a means to trickle down the cost of increased energy demands. The district said that it
“is addressing (the rate structure) in a way that captures the cost and protects the investment for the customers that are already here and invested greatly in our system.”
In December, the Chinese market saw the downfall of cryptocurrency miners due to the sharp drop in cryptocurrency prices. So much so that miners ended up selling their mining rigs by the kilo.