The government of Georgia is moving to install electricity meters across the Mestia municipality, a response to what officials describe as rampant illegal cryptocurrency mining that has overwhelmed the local power grid. Vice Prime Minister Mamuka Mdinaradze pinpointed unauthorized mining operations as a primary cause of excessive electricity consumption in the region, leading to frequent blackouts and degraded service quality.
According to Mdinaradze, power usage in Mestia skyrocketed to 133 million kilowatt-hours in 2025, a figure that dwarfs the typical 10 million kilowatt-hours consumed by comparable areas. He emphasized that this surge is largely attributable to hidden mining activities, which not only strain local infrastructure but also impose financial burdens on the entire country. The government estimates that unlawful electricity use costs Georgia’s energy system between 20 million and 25 million lari annually—equivalent to roughly $7 million to $9 million.
To address the issue, authorities plan to deploy meters across villages and settlements in Mestia to pinpoint sources of abnormal power draw. Importantly, residents will continue to receive free electricity up to a specified limit; only consumption exceeding that threshold will incur charges. Mdinaradze stressed that the initiative targets large-scale illegal mining, not ordinary households. Law enforcement agencies have been enlisted to assist in identifying major offenders and handling any resistance.
The crackdown comes amid a broader trend of enforcement against energy theft linked to crypto mining globally. For instance, Thailand confiscated Bitcoin mining rigs in 2025, and Russia introduced a registry for mining equipment to track unlicensed operators. Georgia’s own history with cryptocurrency mining dates back to at least 2014 when Bitfury launched a 20-megawatt facility in Gori, leveraging the country’s cheap hydropower. More recently, industrial data centers—primarily used for mining—consumed 556 million kilowatt-hours in the first nine months of 2025 alone.
As the government moves forward with metering, the challenge remains distinguishing between legitimate household use and covert mining operations. The success of this effort will hinge on its ability to curb illegal activity without disrupting residents who rely on free power for daily needs.