REGULATION

Georgia Targets Illegal Crypto Mining in Mestia

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Georgia will install electricity meters across Mestia municipality as part of a crackdown on illegal crypto mining that officials say costs the energy system 20 million to 25 million lari a year.

Vice Prime Minister Mamuka Mdinaradze said the metering drive is aimed at identifying and stopping unlawful electricity use tied to hidden mining activity in Svaneti.

Mestia Used 133M kWh in 2025

Mdinaradze said Mestia used 133 million kilowatt-hours of electricity in 2025. He said a municipality of similar size would normally consume no more than about 10 million kilowatt-hours.

Officials said the gap points to large-scale illegal power consumption in the region. The excess use has strained power lines, caused outages and weakened electricity quality for residents and tourism businesses.

Illegal Mining Losses Reach 25M Lari a Year

The Georgian government estimates unlawful electricity use in the area is costing the energy system about 20 million to 25 million lari each year.

Mdinaradze said that burden is effectively passed on to consumers across the country through the wider electricity system.

Free Electricity Stays Within Set Limit

Officials said electricity in Svaneti will remain free for residents up to a defined consumption threshold.

Usage above that limit will be billed. Meters will be installed across households and settlements so authorities can separate normal residential use from hidden industrial-scale consumption.

Police to Help Identify Large-Scale Power Use

Mdinaradze said law enforcement agencies have been instructed to support the metering rollout.

Officials said the program is aimed at protecting grid reliability and reducing costs linked to illegal crypto mining. The next step is the installation of meters across Mestia’s villages and settlements.

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