Georgia plans to install electricity meters throughout Mestia after officials blamed illegal cryptocurrency mining for heavy energy use, grid pressure and frequent outages.
summary
- Georgia will install Mestia meters after illegal mining pushed energy use in 2025 to 133 million kilowatt hours.
- Officials estimate that illegal electricity use costs Georgia’s energy system between 20 and 25 million lari, or $7 to $9 million annually nationwide.
- Residents keep free energy within limits, while law enforcement targets large-scale illegal mining operations there.
Deputy Prime Minister Mamuka Medinaradze He said Illegal cryptocurrency mining has become one of the major energy problems in Mestia. He said the activity was putting pressure on local electricity supplies and damaging the broader energy system.
According to Medinaradze, electricity use in Mestia reached 133 million kilowatt-hours in 2025. He said a similar municipality would typically use about 10 million kilowatt-hours.
The new meters will track excess consumption
The government plans to install meters in villages and settlements in the municipality of Mestia. Officials said the goal is to find the exact sources of heavy electricity use and stop hidden mining operations.
Medinaradze said that electricity in Svaneti will remain free for consumers up to a certain limit. Users who exceed this limit will face tariffs under the new system.
He said that this measure does not target ordinary families. The stated goal is to discover the illegal and hidden use of electricity associated with cryptocurrency mining.
Law enforcement agencies were also asked to support the measurement process. They will help identify widespread illegal use and respond to any obstructions.
Officials point to network stress and general losses
Medinaradze said that the overload on the network had weakened the quality of electricity supply in the region. He said the power outage affected local residents and tourism companies in Mestia.
The government estimates annual losses at between 20 million and 25 million lari from illegal energy use. This equates to approximately $7 million to $9.4 million, based on the numbers cited in the report.
The Deputy Prime Minister also said that the cost is not limited to the region. Energy users across Georgia bear part of the burden through electricity payments, he said.
The city of Mestia is located in the Svaneti region, where free or cheap electricity has helped attract miners. Georgia’s hydropower resources have also made the country attractive to legal and illegal mining operators over the years.
The history of mining in Georgia shapes the debate
Georgia has long played a role in Bitcoin mining due to its low energy costs and access to hydroelectric power. Bitfury opened a 20MW mining facility in Gori in 2014, making the country one of the first centers for industrial Bitcoin mining.
More recent local reports have shown that cryptocurrency data centers still use a significant share of electricity in Georgia. Industrial data centers, mainly engaged in mining, consumed 556 million kilowatt-hours from January to September 2025, one report said.
As crypto.news previously reported, other countries have also moved against illegal mining linked to energy theft. Thailand He took over Bitcoin mining rigs in 2025, while Russia Fired Mining equipment registry to track unlicensed operators.
The latest move by Georgia now brings this implementation trend to Mestia. The key test will be whether the meters are able to separate normal household use from significant underground mining activity without disrupting residents who rely on free electricity within legal limits.
