The Georgian government is preparing to install electricity meters in villages and settlements in the Mestia region in order to reduce the pressure on the electricity grid. According to local media reports, the step will be part of the inspections initiated by the authorities against illegal cryptocurrency mining.
Consumption in Mestia has risen well above normal levels
Georgian Deputy Prime Minister Mamuka Mdinaradze stated in a statement on Monday that illegal mining activities increased Mestia’s electricity consumption to 133 million kilowatt-hours in 2025. This amount is more than 13 times the average of approximately 10 million kilowatt-hours seen in similar municipalities.
Mdinaradze stated that due to illegal mining activities, the energy supply in the region was disrupted, the grid was overloaded, and this led to numerous outages affecting both residents and tourists.
According to authorities, large-scale unauthorized mining activities have placed a significant strain on the energy infrastructure. It has been reported that there are frequent power outages in the region due to increased consumption, which negatively affects tourism activities as well as daily life.
Annual cost reached up to 25 million lari
Mdinaradze said that the annual cost of illegal Bitcoin mining in Mestia reached 20 to 25 million lari. This amount corresponds to approximately $9.4 to $9.5 million. The government aims to identify the source of illegal use more clearly by commissioning meters both at the local scale and at each village or settlement level.
| Indicator | Mestia | Similar municipalities |
|---|---|---|
| 2025 electricity consumption | 133 million kilowatt hours | Approximately 10 million kilowatt hours |
| Estimated cost per year | 20 to 25 million lari | Not specified |
The Deputy Prime Minister also stated that electricity will remain free for each consumer in the Svaneti region up to a determined limit. It was emphasized that the purpose of the new application is not to target general subscribers, but to reveal unauthorized mining activities.
Cheap energy boosts mining interest
Georgia offers relatively cheap electricity thanks to hydroelectric resources fed by the Caucasus Mountains. This has long made the country an attractive hub for Bitcoin miners seeking low energy costs. Georgia also stands out with its tax advantages and free industrial zones in some cryptocurrency activities.
Bitfury is known as one of the first major Bitcoin mining companies to establish operations in the country. The company established a Bitcoin mining facility with a capacity of 20 megawatts, called Gori Data Center, in 2014.
Mini dictionary: Kilowatt-hour is a standard unit that measures electricity consumption. 1 hour of operation of a device with 1 kilowatt power corresponds to 1 kilowatt-hour consumption; Therefore, regional consumption increases directly indicate the load on the network.
On the other hand, no additional statement was made by the official authorities about the sanctions that will be applied to illegal mining activities and whether a legal license will be opened to these businesses. Details on the subject are expected to become clear in the future.
It was stated that the meters to be installed in villages and settlements in Mestia will help determine exactly where illegal mining activities are concentrated.
