Rosseti Group reported losses exceeding 1.3 billion rubles in 2024 due to unauthorized cryptocurrency mining, known as 'black' mining.
Illegal Mining Strains Russia’s Energy Grid
According to a report by TASS, damages were recorded across the company's electrical networks. The most significant impact was in the North Caucasus (600 million rubles), Novosibirsk grid (400 million rubles), and the Center and Volga region (120 million rubles). In Novosibirsk, an operator illegally ran around 3,200 mining devices, causing an estimated loss of 197 million rubles. Rosseti stated that such operations contribute to power grid congestion and low voltage issues, potentially damaging appliances. Authorities have intercepted 130 instances of unauthorized power use, with more than 40 cases under criminal investigation.
Monetizing Excess Capacity By Mining Bitcoin
While unauthorized mining has drained Rosseti's resources, the group is exploring official cryptocurrency mining to optimize underutilized power capacity. The initiative aims to use idle power supply centers efficiently, boosting tariff revenues and regional economic growth. With Rosseti's extensive grid network, they can coordinate mining infrastructure placement and connect to underloaded power centers. Discussions are underway about entering the mining industry and stimulating demand at these sites.
Rosseti's Future in Crypto Mining
Reports state that Rosseti's CEO, Andrei Ryumin, approached Prime Minister Mikhail Mishustin for approval to oversee the development of mining centers. If approved, this could position Rosseti as a major player in crypto mining, leveraging its infrastructure to make excess electricity profitable. This aligns with the company's goal of modernizing Russia's electric grid.
The damage inflicted by unauthorized mining operations presents a significant challenge to Rosseti. However, the company's plans to enter legal crypto mining may become a strategy to alleviate these issues while modernizing the energy system.
