The state-owned electricity distribution company Électricité du Laos (EDL) has made the decision to suspend the supply of electricity to crypto mining projects within the country. The move comes as the company struggles to generate enough power due to drought conditions.
Power Struggle in Laos
Laos experienced a severe drought in the first half of 2023, resulting in increased demand for electricity due to extreme heat. This, in turn, has caused hydropower plants to struggle in generating enough power to meet the needs of the country.
The EDL has stated that hydropower plants currently generate 95% of Laos' power supply. However, as conditions worsen, the country's ability to export electricity to Thailand will also be affected. The EDL aims to prioritize supplying electricity locally and exporting large volumes to Thailand in 2024.
Outstanding Balances
In addition to the power supply challenges, the EDL has also cited the inability of crypto mining projects to pay their outstanding balances as a reason for the suspension. This suggests that the mining operations were not able to financially sustain their energy usage.
The Laotian government had previously approved a public-private pilot program for crypto mining and trading in September 2021. This move aimed to benefit from China's crackdown on mining, which led to industrial-scale miners seeking alternative locations for their operations. At the time, six companies were granted permission to conduct mining activities in Laos as part of the program.
Other Crypto Mining Developments
Meanwhile, in the Sultanate of Oman, a $370 million crypto-mining center has been launched in the Salalah Free Zone. Local company Exahertz, in collaboration with Dubai-based blockchain firm Moonwalk Systems, will be operating the center. This development showcases the growing interest in crypto mining in various regions around the world.
In a separate incident, a Chinese official named Xiao Yi was sentenced to life in prison for corruption in relation to operating a Bitcoin mining enterprise. Prosecutors accused Yi of covering up the mining operations by instructing departments to fabricate reports and manipulate electricity consumption. This case highlights the potential risks and illegal activities associated with the crypto mining industry.
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As the crypto industry continues to evolve, journalism plays a crucial role in providing accurate and independent coverage. Support for independent journalism in the crypto space is encouraged, and The Guardian invites readers to collect this article as an NFT (non-fungible token) to preserve this moment in history and show their support for independent reporting.
