Georgia is preparing to install electricity meters across the town of Mestia to track unusual electricity usage and crack down on clandestine cryptocurrency mining activities. Local officials say illegal mining has become one of the main problems facing the region's power system, continuously pushing up loads and causing numerous power outages.
Electricity consumption in 2025 is significantly higher than expected.
Georgian Deputy Prime Minister Mamuka Mjinaradze stated that Mestia's electricity consumption will reach 133 million kilowatt-hours by 2025, while towns of similar size typically consume around 10 million kilowatt-hours. The government believes this disparity is related to widespread illegal electricity use.
Under the new plan, electricity meters will be installed in villages and settlements throughout Mestia. Officials say the move is primarily aimed at identifying the specific sources of high electricity consumption and shutting down covert mining activities.
Free electricity is retained, but with a cap.
Officials stated that residents of the Svanedi region will continue to enjoy free electricity within a limited quota. Once this quota is exceeded, electricity will be charged under a new system. The government explained that this measure is not targeted at ordinary households, but rather is intended to identify unusual and hidden electricity usage related to cryptocurrency mining.
Law enforcement agencies will also participate in meter installation and inspection work, focusing on identifying large-scale illegal electricity use and dealing with situations that obstruct law enforcement.
The power grid is under pressure, impacting the tourism industry.
Officials say that the prolonged overload operation has weakened the quality of local power supply, and power outages have affected residents' daily lives and also impacted tourism operations in Mestia.
The Georgian government estimates that illegal electricity use costs the national power system between 20 million and 25 million lari annually, equivalent to approximately 7 million to 9.4 million US dollars. Officials also stated that this cost is not borne solely by the local government; other electricity users across the country also contribute to the burden through their electricity bills.
Mestia, located in the Svaneti region, has a long history of free or low-cost electricity, which has attracted both legal and illegal miners. Georgia, relying on its hydroelectric resources, has been one of the most active countries for Bitcoin mining for many years.
Low electricity prices have long attracted miners to enter the market.
Georgia was one of the first countries to enter the industrialized Bitcoin mining sector. In 2014, Bitfury built a 20-megawatt mining farm in Gori, making the country one of the early Bitcoin mining hubs.
In recent years, many countries have also begun to strengthen law enforcement against illegal mining related to electricity theft. The report mentions that Thailand seized Bitcoin mining machines in 2025, and Russia has also launched a mining machine registration system to track unlicensed operators.
