Regulators in British Columbia are looking to pass legislation that seeks to permanently ban new cryptocurrency mining projects from connecting to the provincial power grid to prioritize connections for other purposes.
Summary
- British Columbia will permanently ban new crypto mining projects from connecting to the provincial grid under proposed legislation.
- The province is prioritising electricity for sectors that create more jobs and public revenue.
- Similar restrictions have been introduced in jurisdictions across the globe.
According to a press release issued by the energy ministry, the province is limiting its electricity allocations to allow more room for industries that provide stronger economic returns and greater job creation.
“Our new allocation framework will prioritize vital growth in sectors like mining, natural gas, and lowest-emission LNG, while ensuring our clean energy is directed to projects that deliver the greatest benefit to British Columbians,” Minister of Energy and Climate Solutions, Adrian Dix, said.
The press release referenced how similar measures in other jurisdictions have led to rate increases for everyday households, where unchecked electricity demand from emerging sectors pushed costs higher for regular consumers.
In this regard, regulators have introduced the Energy Statutes Amendment Act, which seeks to limit power supply to data centers and artificial intelligence operations, and to permanently ban new cryptocurrency mining projects from accessing its provincial power utility BC Hydro.
BC Hydro, as the name suggests, relies primarily on hydroelectric sources and is considered the third largest electricity provider in Canada. Ever since the provincial government introduced a temporary moratorium in December 2022, BC Hydro has had a clear mandate to withhold new electricity connections from crypto mining projects.
“We are suspending electricity connection requests from crypto mining operators to preserve our electricity supply for people who are switching to electric vehicles and heat pumps, and for businesses and industries that are undertaking electrification projects that reduce carbon emissions and generate jobs and economic opportunities,” said Josie Osborne, British Columbia’s Minister of Energy at the time.
With the latest policy changes, British Columbia will be permanently implementing this suspension through the new legislation.
Crypto mining crackdown across the globe
British Columbia is not alone in taking a tougher stance on cryptocurrency mining. As the activity remains highly energy-intensive, it often places an added burden on electricity grids, especially during periods of peak demand or when supply is already stretched.
Russia, for instance, has implemented complete bans on cryptocurrency mining in certain regions to tackle the electricity shortage during times of demand. Elsewhere, Norway temporarily banned the launch of new crypto mining data centers earlier this year for similar reasons.
Meanwhile, South East Asian nations like Thailand and Malaysia haven’t banned cryptocurrency mining but have led efforts to crack down on illegal operations, as they have led to significant losses for local electricity providers.
Source: https://crypto.news/british-columbia-to-block-new-crypto-mining-projects/