The government in Kazakhstan is considering building a nuclear power plant to fill a power deficit allegedly caused by the booming crypto mining industry. Power problems are driving miners who saw the Central Asian country as a new home when China recently cracked down on industry.
NPP project revived amid scarce energy supplies for the crypto mining sector in Kazakhstan
The authorities in Kazakhstan are now considering implementing a decade-long plan to build a nuclear power plant (NPP) to solve the country’s pressing problems with a growing electricity deficit. With tariffs capped and a crypto-friendly attitude, the former Soviet republic attracted a crowd of Chinese miners who were chased away by Beijing’s offensive against the crypto industry in May of this year. However, some of them are now leaving the country because their hardware is idle.
Kazakhstan’s energy minister Magzum Mirzagaliev announced this week that two locations are currently being examined as potential locations for a nuclear power plant. These are the village of Ulken in the Alma-Ata region and the city of Kurchatov in the East Kazakhstan region. Quoted by the Russian news agency Tass, Mirzagaliev stated:
We are done with the production and consumption record by 2035. We clearly see the need to build a nuclear power plant to power our people and our economy.
Kazakhstan is the world leader in uranium ore mining and has been considering building a nuclear power plant for over a decade. Mirzagaliew admitted that it would take another 10 years to build. The Nur-Sultan government is currently in talks with the Russian state nuclear power company Rosatom, which has built nuclear power plants in China, India and Belarus. The nuclear power plant will also help Kazakhstan achieve its CO2 neutrality targets by 2060, the official noted.
The country experienced a power shortage last summer when the influx of Chinese miners caused a 7% power deficit in the first three quarters of the year. The energy-hungry data centers were quickly blamed for the shortages, and authorities estimated that a single crypto farm uses as much energy as 24,000 households. The deficit forced Kazakhstan, a large fossil fuel producer, to buy expensive electricity from Russia to fill the gap.
Kazakhstan has maintained a generally positive attitude towards the crypto industry. She greeted miners and took steps to regulate the sector. Recently published estimates suggest that crypto mining could pour around $ 1.5 billion into its economy over the next five years, with over $ 300 million expected in tax revenue. In January, it will charge $ 0.0023 for every kilowatt-hour of electricity consumed by registered mining companies.
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Bitcoin, coinage, crypto, crypto farms, crypto miners, crypto mining, crypto currencies, crypto currency, deficit, electricity, electricity shortage, power supply, energy, Kazakhstan, miners, mining, mining company, NPP, nuclear, nuclear power plant, electricity deficit, power plant, project, Bottlenecks
Do you think a Kazakhstan nuclear power plant will solve power supply problems and ensure enough electrical power for its crypto mining industry? Let us know in the comments section below.
Lubomir Tassev is a tech-savvy journalist from Eastern Europe who likes Hitchens’ quote: “Being a writer is what I am and not what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two more Sources of inspiration.
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