The President of Kyrgyzstan, Sadyr Japarov, has given the green light for the construction of a hydropowered cryptocurrency mining farm. This project aims to utilize the excess energy generated by the Kambar-Ata-2 Hydro Power Plant, which has been unable to sell its surplus electricity. With an estimated investment of $20 million, this initiative could help the power plant avoid financial losses caused by unused energy.
The Kambar-Ata-2 plant, operational since 2010, produces 120 MW of energy annually but can only utilize 90 MW. The remaining 30 MW goes to waste, resulting in a loss of over $37 million. By allowing the construction of a crypto mining farm, Kyrgyzstan intends to make productive use of this excess energy.
President Japarov highlighted that the mining facility could temporarily halt operations during winter when the power plant’s productivity is lower. The construction of the mine is expected to be completed within the next nine months. Additionally, the government plans to build more hydroelectric power plants and export energy to neighboring countries like Pakistan and Afghanistan through the CASA 1000 line.
To ensure the project’s compliance and prevent any harm to the state, the authorities will closely monitor the activities of the mining farm. President Japarov emphasized the importance of transparency and urged those reporting on the matter to provide accurate information instead of attempting to confuse the public. He stated that the nation has evolved politically and is committed to making informed decisions.
The support for the digital asset industry in Kyrgyzstan is not new. Last year, Karim Xanzheza, a Deputy of the Parliament, expressed his enthusiasm for cryptocurrencies, noting their rapid growth. He advocated for the implementation of a regulatory framework and suggested the introduction of a national cryptocurrency to attract professionals who could contribute to the nation’s efforts in this field.
In conclusion, Kyrgyzstan is set to invest $20 million in the construction of a hydropowered crypto mining farm, leveraging the excess energy of the Kambar-Ata-2 Hydro Power Plant. This initiative aims to avoid financial losses caused by unused electricity while also positioning the country as a player in the digital asset industry. The government plans to closely monitor the mining farm’s activities and increase the construction of hydroelectric power stations to further support the export of energy to neighboring countries.