Kazakhstan Extends Power Cut For Crypto Miners Until February 7
Kazakhstan has extended its power cut for crypto farms. The power will remain unplugged until February 7, due to ongoing difficulties with electricity supply.
Authorized crypto mining centers in Kazakhstan will not be able to operate at least until next Monday, February 7, after the country’s power distribution company extended previously introduced supply restrictions for another week.
The government-run Kazakhstan Electricity Grid Operating Company (KEGOC) has notified mining firms that the restrictions will continue, due to unresolved problems with maintaining stable electricity supply in the country.
The measure was initially introduced January 24, and mining farms were ordered to shut down until end of January. Close to 70 companies were impacted by the power cuts, as blackouts occurred in the region caused by a damaged power line.
The mining firms are waiting clarification from the Ministry of Energy before they plan their future operations in the country, according to the head of the National Association of Blockchain and Data Center Industry of Kazakhstan, Alan Dorjiyev.
Kazakhstan has been struggling with a growing power deficit since last year when it became a major mining hotspot after China cracked down on the industry. The influx of miners, which increased the country’s share in the global bitcoin hashrate to over 18%, has been blamed for the electricity shortages.
Last month Dorjiyev said that miners have become an excuse for KEGOC and the Energy Ministry when in reality the problems are caused by aging infrastructure and insufficient generation capacity. Kazakhstan maintains capped electricity rates and the sector has been suffering from lack of investments.
Issues with power supply have already lead to some of mining companies to leave the Central Asian nation. To fix the issue, Kazakhstan has increased electricity imports from the Russian Federation. The government is also planning to revive a decade-old project to construct a nuclear power plant.
Rising energy prices, sparked mass protests in Kazakhstan in the first days of the year. To shut down the violence, the government closed down banks and restricted access to the internet. The country was able to stabilize situation within a week, and miners restarted their operations until they faced the recent power cuts.
