The Georgian government is gearing up to install electricity meters across villages and settlements in the Mestia region in a crackdown on illegal cryptocurrency mining. The move, reported by local media, forms part of broader efforts by authorities to relieve mounting pressure on the power grid and identify unauthorized consumption.
Power consumption in Mestia soars beyond normal levels
Deputy Prime Minister Mamuka Mdinaradze stated on Monday that unlawful mining has pushed Mestia’s projected 2025 electricity demand to 133 million kilowatt-hours—over 13 times the typical 10 million kilowatt-hours seen in similar municipalities.
According to Mdinaradze, illegal mining operations have severely disrupted energy supply in the region, overburdened the grid, and triggered frequent outages impacting both residents and tourists.
Officials note that these large-scale unauthorized mining activities have significantly strained the local energy infrastructure. The resulting consumption surge has led to recurring blackouts, negatively affecting everyday life and the tourism sector alike.
Annual costs climb up to 25 million lari
Mdinaradze also revealed that illegal Bitcoin mining in Mestia has driven annual energy costs as high as 20–25 million lari, an amount equivalent to roughly 9.4 to 9.5 million US dollars. Authorities aim to install the new meters both locally and in each village to help pinpoint the sources of illicit power usage more precisely.
| Indicator | Mestia | Similar municipalities |
|---|---|---|
| 2025 electricity consumption | 133 million kilowatt-hours | About 10 million kilowatt-hours |
| Estimated annual cost | 20–25 million lari | Not specified |
The Deputy Prime Minister emphasized that in Georgia’s Svaneti region, electricity will remain free up to a specified consumption limit for each user. The forthcoming metering policy aims not to target ordinary customers, but to expose unauthorized mining activities hidden within the system.
Cheap energy draws increasing mining interest
Georgia offers comparatively inexpensive electricity, thanks to its hydroelectric resources fed by the Caucasus Mountains. This low energy cost has made the country a longstanding magnet for Bitcoin miners seeking affordable operations. Additional factors, such as specific tax benefits and free economic zones, further strengthen Georgia’s position in the cryptocurrency sector.
Bitfury was among the first large-scale Bitcoin mining companies to establish a presence in Georgia, launching the 20-megawatt Gori Data Center facility back in 2014.
Quick glossary: A kilowatt-hour is a standard unit for measuring electricity consumption. One kilowatt-hour equals one kilowatt of power used for one hour; thus, local increases directly reflect added load on the grid.
No additional official statement has yet been made regarding sanctions on unlawful miners or whether there will be a pathway to legal licensing for these activities. Further clarification from authorities is expected in the future.
The installation of meters across Mestia’s villages is expected to help precisely identify areas where illegal mining operations are concentrated, authorities stated.
