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 aims to utilize excess energy from the power plant to address energy losses and boost the country’s economy through the cryptocurrency industry.
Tapping into Excess Energy for Crypto Mining
The Kambar-Ata-2 Hydro Power Plant, which has been operational since 2010, produces around 120 MW of energy annually. However, due to its limited capacity to utilize only 90 MW, approximately 30 MW of energy goes to waste, resulting in substantial financial losses of over $37 million. President Japarov’s approval to harness this surplus electricity for crypto mining aligns with the government’s vision of optimizing energy usage and strengthening the country’s energy system.
Strategic Design and Flexibility
The proposed crypto mining facility will be strategically designed to operate with flexibility. Plans include temporarily suspending operations during the winter months when the power plant’s productivity is lower. The nine-month construction project aims to efficiently utilize the excess energy and contribute to the growth of the country’s cryptocurrency sector.
Advancing Energy Exports and Economy
Beyond addressing energy losses, Kyrgyzstan’s government has broader ambitions to construct more hydroelectric power plants. This strategic move will pave the way for future energy exports to neighboring countries. The country’s commitment to export electricity to Pakistan and Afghanistan through the CASA 1000 line aligns with its vision to expand its energy market and bolster its economy.
Support for the Digital Asset Industry
Kyrgyzstan’s Deputy of the Parliament, Karim Xanzheza, has been a vocal advocate for supporting the digital asset industry in the country. He emphasizes the importance of implementing a regulatory framework to harness Kyrgyzstan’s potential in the cryptocurrency sector. Additionally, Xanzheza proposed the idea of introducing a national cryptocurrency to attract professionals and investors, further stimulating the country’s crypto endeavors.
Embracing the Fast-Growing Crypto Industry
With its abundant natural resources, Kyrgyzstan is determined to embrace the fast-growing cryptocurrency industry through hydroelectric-powered mining. President Japarov’s approval for the construction of the crypto mining facility signifies the country’s commitment to capitalize on its energy surplus and unlock the potential of the cryptocurrency sector. As Kyrgyzstan ventures into the world of crypto mining, it seeks to position itself as a significant player in the global blockchain ecosystem.