Kyrgyz Republic, a central Asian country, is reportedly kick starting a cryptocurrency mining project in anticipation of positive impacts on its economy. According to a local report, President Sadyr Japarov has given the green light to establish a cryptocurrency mining farm at the country’s Kambar-Ata-2 Hydro Power Plant.
The president emphasized that operating a crypto mining farm will enable the government to utilize the surplus energy that was previously going to waste at the power plant.
According to Japarov, since the Kambar-Ata-2 was launched in 2010, approximately 6.8 billion kilowatt-hours (kWh) of energy have been lost due to inefficiencies.
President Japarov stated:
“First of all, we gave permission to build a mining farm in Kemin district at 5 soms 04 coins per 1 sq.m. The reason is that Kemin substation has enough power. Second, we have enough electricity on summer days. It even exceeds. We cannot sell anywhere.”
To fund the construction of this ambitious project, the Kyrgyzstan government has allocated a substantial budget of up to $20 million. The government expects that harnessing the plant’s surplus energy will have significant positive impacts on the country’s economy.
Japarov noted that Hydroelectric power plants are presently being constructed and are scheduled to commence operations by the year’s end. He envisions that these power plants will transform the nation into an electricity-exporting country. Japarov highlighted that the objective is to begin exporting electricity to Pakistan and Afghanistan starting in the upcoming year.
However, the country is also facing challenges in its energy sector. In response to a combination of climate challenges, reduced water inflow into the Naryn River basin, and a lack of generating capacity due to a significant surge in energy consumption, President Japarov declared a state of emergency in Kyrgyzstan’s energy sector. This state of emergency is scheduled to take effect from August 1, 2023, and is expected to last until December 31, 2026.
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