Kyrgyzstan’s Crypto Controversy: Energy Crisis Meets Potential Corruption

Kyrgyzstan‘s crypto-mining farm near Bishkek consumes massive power daily. This strain rivals cement factories, gold mines, and bustling bazaars. As a result, locals face electricity shortages. The government, however, claims an energy surplus.

President Sadyr Japarov defended this energy-hungry operation. He believes Kyrgyzstan has summer power surpluses. Despite this, he admitted the farm might shut down in winter if deficits appear. This operation contributed $2.5 million in taxes. Additionally, it paid $5.5 million for electricity.

However, after an RFE/RL investigation, the crypto farm decided to draw power from Kazakhstan. The country now loses significant revenue. Energy Minister Taalaibek Ibraev blamed the investigation for this shift.

Ibraev recently pushed for an energy-saving campaign. Kyrgyzstan‘s main power plant, Toktogul, faces its lowest reservoir levels in three years. Due to this, power cuts occurred last winter. Kemin residents, living near the crypto farm, felt this impact keenly.

Local accounts suggest the crypto farm uses extensive daily power. Additionally, official data previously showed the crypto operation, Solarcoin, as a top electricity consumer. After the RFE/RL probe, this data vanished.

Inside information hints at potential conflicts of interest. Connections exist between Solarcoin’s founders and key energy officials. Moreover, Kyrgyzstan‘s push towards hydroelectric power compounds the grid’s strain. Dry years, like 2023, increase challenges.

Experts believe private interests override public welfare. Kyrgyzstan‘s energy sector highlights this issue. Many face obstacles when seeking electricity access for businesses. Meanwhile, specific projects receive easy approvals.

In conclusion, while Kyrgyzstan‘s crypto ventures bring revenue, they also spotlight deeper energy and governance challenges.

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