The district administration in Georgia’s northern region of Svaneti has urged residents to turn off bitcoin mining equipment, warning that the growing pressure on the area’s electricity supply may soon lead to widespread power outages across the region.

As local media reported on 12 November, the mayor of Svaneti’s capital, Mestia, called specifically upon those in the villages of Chuberi and Haishii, stating that "electricity consumption has increased catastrophically in [these] administrative units, which is associated with uncontrolled mining of cryptocurrencies".

A NewsGeorgia report said that Svaneti’s energy supply is currently working in overdrive and could fail at any time. This could leave many households without power heading into the winter months, which in Svaneti are typically cold and snowy.

Mestia’s mayor implored miners to unplug their equipment “for the well-being of the rest of the population – your neighbours, your relatives, your friends”.  

This is not the first time Mestia and the surrounding villages have faced issues with their electricity supply. The mountainous Svaneti region has become a cryptocurrency haven in recent years due to concessions granted by Georgia’s highland support programme. This scheme drastically cuts electricity prices for high-altitude households, with some residents in the most remote villages enjoying a free power. 

Whilst many in the region have profited from the virtual economy, others have suffered as a result of power outages, which are made more catastrophic by the lack of a natural gas supply in the mountain region.

The tourism industry – one of few economic drivers in Svaneti – gets hit particularly hard during power outages, as hotels, restaurants and ski lifts grind to a halt.