Kyrgyzstan’s President Sadyr Japarov has given the green light for the construction of a hydro-powered crypto mining facility at the Kambar-Ata-2 Hydro Power Plant.
With an estimated investment of $20 million, the project seeks to address energy losses by utilizing excess energy from the plant. The move comes amid efforts to harness the potential of the cryptocurrency industry and boost the country’s economy.
The Kambar-Ata-2 Hydro Power Plant, operational since 2010, produces approximately 120 MW of energy annually. However, it can only utilize 90 MW, resulting in around 30 MW of excess energy being wasted, leading to substantial financial losses of over $37 million.
President Japarov emphasized the importance of utilizing surplus electricity, especially during summer days when electricity generation exceeds demand.
By permitting the establishment of crypto mining facilities, the government aims to optimize energy usage and benefit the country’s energy system.
The crypto mining facility will be strategically designed to operate with flexibility, with plans to temporarily halt operations during the winter months when the power plant’s productivity is lower. The construction is expected to be completed within the next nine months.
In addition to addressing energy losses, Kyrgyzstan’s government plans to construct more hydroelectric power plants, paving the way for future energy exports to neighboring countries.
The country is set to export electricity to Pakistan and Afghanistan through the CASA 1000 line, a commitment made to the World Bank.
Kyrgyzstan’s Deputy of the Parliament, Karim Xanzheza, has been vocal about supporting the digital asset industry. He advocates for the implementation of a regulatory framework to capitalize on the country’s potential in the cryptocurrency sector.
Xanzheza also suggested the introduction of a national cryptocurrency to attract professionals who can contribute to Kyrgyzstan’s cryptocurrency endeavors.
As Kyrgyzstan ventures into the world of crypto mining with hydroelectric power, it is determined to capitalize on its abundant natural resources and embrace the fast-growing cryptocurrency industry.
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