Excessive use of electricity causes Abkhazia to cut off the power of crypto miners
The government of the Republic of Abkhazia seemingly has a short fuse for companies and technologies that threaten their “greener practices.” On December 31, the government turned off the power to 15 facilities for allegedly using too much electricity. Cryptocurrency mining farms suffered most from the effects of this temporary shutdown.
According to the announcement from Chernomorelectro, the 15 facilities they’ve cut the power for had a capacity of 8,950 kilowatt-hours (kWh), which equals the energy consumption of 1,800 households, or the whole Sukhumi District.
The use of large amounts of electricity by crypto mining farms has been a reoccurring concern for regulators across the world. In fact, Norway and the United States have even taken preventative measures. For instance, Norway recently ended electricity subsidies for mining farms to prevent gas emission and global warming. Similarly, in the United States, the Chelan County Public Utility District proposes to increase electricity costs for crypto miners.
The excessive use of electricity isn’t only a concern for regulators, but crypto miners themselves as well, as it can affect their bottom line. Reportedly, crypto mining firms saw very little to no profits in the first fiscal half of 2018, despite increased revenues they’ve experienced in 2017.