tl;dr
Rosseti Group, Russia's power grid company, suffered losses of over 1.3 billion rubles (approximately $14.2 million) in 2024 due to unauthorized cryptocurrency mining operations. The damages were widespread across the company's electrical networks, with the North Caucasus region being the most signi...
Rosseti Group, Russia's power grid company, reported losses exceeding 1.3 billion rubles (approximately $14.2 million) in 2024 due to unauthorized cryptocurrency mining operations. The damages were widespread across the company's electrical networks, with the North Caucasus region being the most significantly impacted. Unauthorized crypto mining contributes to power grid congestion, leading to low voltage issues, and authorities have intercepted 130 instances of unauthorized power use, with over 40 cases under criminal investigation.
Despite the losses, Rosseti has announced plans to explore cryptocurrency mining to optimize underutilized power capacity and boost tariff revenues. Discussions are underway about the potential entry into the mining industry and strategies to regulate energy use efficiently. Rosseti's CEO has approached the Prime Minister for approval to oversee the development of mining centers, positioning the company as a major player in the crypto-mining sector.
The most significant impact was recorded in the North Caucasus region, amounting to over 600 million rubles. The Novosibirsk grid suffered losses of 400 million rubles, while the Center and Volga region experienced damages amounting to 120 million rubles. Authorities have intercepted 130 instances of unauthorized power use, with more than 40 cases under criminal investigation, potentially leading to prison sentences.
While unauthorized crypto mining has drained Rosseti’s resources through electricity theft, the group announced exploring cryptocurrency mining as a way to optimize underutilized power capacity. The company aims to use idle power supply centers efficiently, boost tariff revenues, and contribute to regional economic growth through tax revenue. Discussions are underway about the company’s potential entry into the mining industry, including strategies to stimulate demand at these sites. Rosseti also emphasized its advanced energy infrastructure, which includes modern switching equipment and load management systems designed to ensure power grid stability.
Kommersant had earlier reported that Rosseti’s CEO has approached Prime Minister for approval to oversee the development of mining centers. If granted, this initiative could position Rosseti as a major player in the crypto-mining sector, leveraging its infrastructure to turn excess electricity into a profitable venture while maintaining grid reliability.