Russia Proposes 'Take-or-Pay' Electricity Model for Crypto Mining by 2027
Russia plans to implement a 'take-or-pay' electricity payment model for large crypto mining operations and data centers by 2027. Proposed by Deputy Prime Minister Alexander Novak, the initiative targets facilities with power capacities of 670 kW or higher. Under this model, operators would pay for up to 90% of their declared capacity instead of actual consumption. This policy aims to reduce unnecessary infrastructure construction and limit tariff growth for other consumers, despite industry concerns over increased operational costs and potential contradictions with existing regulations.
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Russia is set to introduce a 'take-or-pay' electricity payment model for large-scale crypto mining and data centers by 2027. Proposed by Deputy Prime Minister Alexander Novak, it targets facilities with a power capacity of 670 kW or more.
Operators would be required to pay for up to 90% of their declared capacity, shifting from a pay-per-use model. The Ministry of Energy claims this could limit unnecessary infrastructure development and control tariff growth for other consumers.
However, the proposal faces criticism for potentially raising operational costs significantly and conflicting with existing regulations. Industry experts warn that this could slow mining farm expansion and shift operators to self-generated power in remote areas.
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