Cryptocurrency Mining in Ukraine: Electricity Consumption and Development Prospects

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by Giorgi Kostiuk

2 years ago

Made with AI


  1. Electricity Consumption by Mining Farms
  2. Bitcoin Mining and Household Electricity Consumption
  3. Estimation of Electricity Consumption by Miners and Infrastructure

  4. Ukraine remains among the top countries in terms of cryptocurrency adoption. How does mining work in the country during the current conflict with Russia?

    Electricity Consumption by Mining Farms

    The report shows that Ukrainian miners consumed an average of 616 MW per hour in April and 487 MW per hour in May. Comparing this to a steel mill, which can consume between 200 and 1,000 MW per hour, Ukrainian miners' electricity consumption in April and May 2024 equaled or exceeded that of large industrial enterprises. Ukraine's total electricity consumption in 2023 was about 15 GW per hour, with a current deficit of 9 GW. In March 2024, miners consumed about 6.7% of the country's total electricity consumption.

    Bitcoin Mining and Household Electricity Consumption

    The average cost of electricity required to mine one Bitcoin (BTC) is $46,291. On the market, its price at the beginning of September was $58,000 at the time of the study. Costs and profits will vary in different regions. Mining one BTC requires approximately 110,000 kWh. Therefore, if calculated based on prices for consumers in Ukraine, the cost of one BTC will be $12,540.

    Of course, this calculation does not take into account other expenses, such as equipment and its depreciation.

    Estimation of Electricity Consumption by Miners and Infrastructure

    According to the study, the average volume of electricity consumption by miners from April to June was equal to the needs of 658 hospitals, 3.5 million units of street lighting, more than 36,000 stores, and more than half a million air conditioners. The level of energy consumed by miners would be enough to supply the largest Ukrainian cities for several days. The daily rate of electricity consumption by the miners (9052 MW per day) allowed for 3.89 days without outages in Kyiv and Dnipro. 1 day of mining covers 4 days of no power outage in Kyiv and Dnipro.

    However, if the situation with power generation improves along with the conditions for legal mining business, mining may well become a boon for post-war Ukraine.

    Despite current difficulties, Ukraine has prospects for developing cryptocurrency mining due to high public interest and low electricity costs. Legislative issues are also under consideration.

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