By early 2026, Kazakhstan’s power grid is on the edge. Not because of a sudden blackout, but because of years of neglect, aging infrastructure, and a surge in energy-hungry industries - including cryptocurrency mining. The country’s electricity system, once reliable enough for basic needs, now struggles to keep lights on in rural towns while data centers hum in the background, siphoning off power meant for homes and hospitals.
The Grid Is Breaking Down
Kazakhstan’s power grid isn’t just old - it’s crumbling. As of January 2024, over one-third of the country’s 220 active power plants showed wear and tear levels between 70% and 90%. Some regional grids are worse. In places like Oral and Aktobe, transmission losses hit 18% - meaning nearly one in every five kilowatts of electricity vanishes before it reaches a home or factory. For comparison, developed countries consider anything above 10-12% unacceptable. In Kazakhstan, it’s the norm.The national grid operator, KEGOC, manages a network that spans thousands of kilometers. But the system is outdated. Transformers built in the 1970s are still running. Transmission lines are overloaded. Control systems haven’t been upgraded since the 1990s. And with winter temperatures dipping below -30°C, demand spikes every year - pushing the grid closer to failure.
Technical violations - like illegal connections, overloaded circuits, and improper maintenance - jumped from 18,609 in 2022 to over 28,000 in 2023. Even though they dropped to 18,263 in the first eight months of 2024, the underlying problem hasn’t changed: the grid can’t handle modern demands.
Renewables Are Coming - Too Slowly
Kazakhstan has the sun, the wind, and the space to become a renewable energy leader. The government announced plans to build three 1-gigawatt wind farms. Solar and wind generation are on track to surpass hydropower this year, and renewables could overtake coal by 2025. Over $2.6 billion has been pledged to the sector.But here’s the catch: most of that money is going into large-scale projects far from where people live. The real bottleneck isn’t generation - it’s distribution. The grid can’t absorb intermittent power from solar panels or wind turbines without major upgrades. Smart meters, grid-balancing tech, and flexible transmission corridors? Still in planning stages.
Small businesses and households want to install rooftop solar. The law allows it. But the upfront cost - $3,000 to $5,000 for a system that pays for itself in 7-10 years - is out of reach for most. Without subsidies, loans, or financing programs, distributed generation remains a dream.
Crypto Mining: Scapegoat or Symptom?
You’ve probably heard that Kazakhstan banned crypto mining to save electricity. That’s not true - not yet, anyway.There’s no official ban on cryptocurrency mining in Kazakhstan as of early 2026. But the government has quietly started pressuring miners. In late 2024, regional energy companies began shutting down unlicensed mining operations. In some areas, miners were told to reduce power use by 30% or face disconnection. Others received bills for electricity they didn’t pay - because their mining rigs were running on stolen or unmeasured power.
Why now? Because crypto miners are using up to 20% of Kazakhstan’s total electricity output during peak hours. In Almaty and Nur-Sultan, miners account for nearly 15% of winter demand. That’s not a small number. It’s enough to trigger rolling blackouts in nearby villages.
Unlike factories or hospitals, mining rigs run 24/7. They don’t pause for holidays. They don’t respond to conservation appeals. And they pay far less per kilowatt than residential users - because of outdated pricing rules.
The Ministry of Energy has tried to fix this. In 2025, they introduced a new tariff structure that charges miners 2.5 times the residential rate. But enforcement is patchy. Many miners still operate under fake business licenses or through shell companies registered in other regions.
Who Pays the Price?
When the grid fails, it’s not the miners who suffer. It’s the elderly woman in Karaganda who can’t heat her home. The child in Shymkent studying under a flickering bulb. The factory worker whose shift gets canceled because the power went out at 3 a.m.Electricity tariffs jumped 50% across the country by April 2025. The government blames rising fuel costs and grid maintenance. But many locals know the truth: the grid is being stretched thin by energy-hungry industries that don’t pay their fair share.
There’s a deeper issue here too: corruption. Many of the largest mining operations are linked to politically connected companies. Regulatory inspections are rare. Fines are rarely paid. And when a miner gets disconnected, it’s often just for a few days - until they reconnect through a new line or a bribed technician.
The Path Forward
Kazakhstan has a plan. KEGOC’s 2023-2032 roadmap includes building a 2,000 MW North-South HVDC line, modernizing interzonal connections, and integrating renewables into the national grid. By 2040, they hope to unify the entire country’s power system.But time is running out. Without immediate action, Kazakhstan could face electricity shortages by 2030. The government needs to do three things:
- Enforce real-time metering for all large consumers - especially miners - and cut off those who bypass it.
- Restructure pricing so miners pay market rates, not subsidized ones, and use that revenue to upgrade the grid.
- Launch a national program to help households and small businesses install solar panels with low-interest loans and tax credits.
It’s not about banning crypto mining. It’s about making sure everyone pays their fair share - and that the grid doesn’t collapse under the weight of its own neglect.
What’s Next?
If you’re a crypto miner in Kazakhstan, your days of cheap power are numbered. The government isn’t banning you - but it’s making it harder to hide. Expect more audits, stricter metering, and higher bills. If you’re a homeowner, the same rules apply: if you want solar, you’ll need to find funding. No handouts. No subsidies. Just a grid that’s slowly, painfully, being rebuilt.The real story here isn’t about Bitcoin or Ethereum. It’s about who gets power - and who gets left in the dark.
Is there an official ban on crypto mining in Kazakhstan?
No, there is no official nationwide ban on cryptocurrency mining in Kazakhstan as of early 2026. However, regional energy providers have begun shutting down unlicensed or non-compliant mining operations due to grid strain. Miners are being required to pay higher electricity rates and install certified meters. Those who evade regulation face disconnection and fines.
How much electricity does crypto mining use in Kazakhstan?
Crypto mining consumes an estimated 15-20% of Kazakhstan’s total electricity during peak winter months. In major cities like Almaty and Nur-Sultan, miners account for nearly 15% of residential demand. This has led to rolling blackouts in nearby rural areas where grid capacity is already weak.
Why are electricity prices rising in Kazakhstan?
Electricity prices rose by 50% by April 2025 due to a combination of factors: aging infrastructure requiring costly repairs, increased demand from mining operations, and the government’s decision to shift costs onto high-consumption users. The single buyer system in the energy market has also become financially unstable, forcing tariff hikes to cover operational losses.
Can households install solar panels in Kazakhstan?
Yes, households and small businesses can legally install solar panels. The law supports net metering and distributed generation. However, the upfront cost - typically $3,000-$5,000 - is prohibitive for most families. Without government subsidies, loan programs, or tax incentives, adoption remains very low, despite favorable regulations.
What’s being done to fix the grid?
Kazakhstan’s grid operator, KEGOC, is working on a 10-year modernization plan that includes building a 2,000 MW North-South HVDC transmission line between 2024 and 2029, upgrading aging substations, and integrating renewable energy sources. Smart grid technology is also in development, but implementation is slow due to funding gaps and bureaucratic delays.
