Georgia to Install Meters in Mestia to Curb Illegal Crypto Mining

The Georgian government will install electricity meters across villages and settlements in the Mestia municipality to locate and curb illegal Bitcoin mining after power use in the area rose to 133 million kilowatt-hours in 2025, Vice Prime Minister Mamuka Mdinaradze announced at a press briefing.

The government says the 133 million kWh figure is more than 13 times the consumption of comparable municipalities. Officials report repeated outages and grid overloads that have disrupted daily life and affected tourists in the Svaneti region.

Meters will be placed at local distribution points and within settlements to identify high, continuous loads typical of industrial-scale mining and to distinguish those from normal household consumption. Authorities intend to use the data to pinpoint sites drawing abnormal power and to support enforcement actions.

Authorities estimate the extra consumption has resulted in annual financial damage of roughly 20–25 million lari, about $9.4 million. Electricity in Svaneti will remain free for each consumer up to a predetermined quantity; officials emphasize the metering is aimed at illegal operators rather than ordinary residents.

Georgia’s abundant hydropower and relatively low electricity prices have attracted cryptocurrency mining. The sector has also benefited from favorable tax treatment, including designated industrial zones and value-added tax exemptions for some crypto activities. Major firms established operations in the country in past years, including a 20-megawatt Bitcoin facility built in 2014.

Officials have not released details on penalties for illegal miners or whether existing operators can seek formal licences to regularize their activities. Mdinaradze said the combination of targeted metering and law enforcement work will identify illegal sites so appropriate measures can be taken.

Local authorities expect the meters to provide data that utility managers can use to plan repairs, balance supply and prevent further damage to the distribution system while protecting residents’ access to subsidized electricity.