Jul 1, 2022

Mining farms in Sichuan shut down equipment due to lack of electricity

Mining farms in Sichuan, China shut down equipment due to a shortage of electricity, which due to the delay of the rainy season.

According to local media, since May the load onSichuan's electricity network grew by 22%, and the water level in rivers decreased by 20%, which led to a decrease in the production of hydroelectric power stations. Under such conditions, with peak network loads, some regions of China suffer from a lack of capacity, and high temperatures can lead to drought and exacerbate the situation. This negatively affects the activity of miners who expected the rainy season to begin in May.

According to Chinese miners, they cannotwork for more than three days, and some manage to start mining only at night. There are serious power outages in Chengdu, but things are a little better in remote regions. It is expected that this situation will last until the beginning of June. At the same time, miners are aware of all the risks associated with delaying the rainy season. In 2019, rains began a month later, and then rains destroyed many mining farms.

Another contributing factor to the shutdownequipment, it became the decision of local authorities to “legitimize” relations with mining farms. Last month, Sichuan authorities urged miners to consume excess hydropower ahead of the summer rainy season, but such farms must comply with applicable laws, as well as safety and resource standards, so as not to harm the environment.

For new mining farms, this may be good.a prerequisite for development, however, the "veterans" of this industry have concerns that they may have difficulties with taxes or illegal construction. This month, the Sichuan administration fined a mining farm of 10 million yuan and seized its equipment due to problems with the Environmental Protection Agency.

Recall that in November due to the end of the seasonin Sichuan, Chinese miners were also forced to turn off equipment, but this province is ready to take measures to remain attractive to mining farms.