The power shortage in the Gulf country is a result of multiple causes: a population increase, urbanization, increased temperatures, and postponed upkeep at current power plants. Authorities have focused on the southern sector of Al-Wafrah, where around 100 houses were said to be utilized for mining operations.
Some of Al-Wafrah’s mining facilities use as much as 20 times the average electricity levels that ordinary homes require, according to earlier reports made by the ministry of electricity. The nation’s highly subsidized cheap electricity has brought miners who hope to make big profits.
The case illustrates how crypto mining looks for areas with low electricity costs. The same trends have been observed globally, leading nations from Kosovo to Russia to limit mining to avoid power shortages.
The ministry of electricity announced a 55% decline in energy consumption in Al-Wafrah after last week’s crackdown operation. This steep decline indicates the crackdown has been successful in its initial phases.
Kuwait’s cryptocurrency policy is starkly at odds with that of some of its neighbors. As Kuwait suppresses mining, Dubai opened this week to a key crypto conference, with Eric Trump, the son of US President Donald Trump, in attendance.
As Kuwaiti summers heat up in the next few months, officials continue to ask citizens to cut back on electricity consumption, expecting the clampdown on miners to avoid frequent power outages during the hot summer months ahead.
Featured image from Unsplash, chart from TradingView
