Crypto mining operations in Canada might take a hit as the electric utility in the region seeks to cut down energy supply. BC Hydro, British Columbia Hydro and Power Authority, reported on December 21st that it will not be accepting requests for electricity-connection for crypto mining. Although the ongoing mining operations might not get affected, the newer or aspiring firms will have tough times for a few months.
According to the report, the move of electricity requests came in the wake of BC Hydro’s efforts to preserve clean energy supporting the climate action and economic goals of the British Columbia Province of Canada. The suspension will last for 18 months from now. This would mean that there will be no new connection for cryptocurrency mining for the said time period.
Given the temporary suspension, BC would be able to preserve its electricity supply that would end up giving sufficient time to the government and BC Hydro. They will then be able to engage with the industry and ‘First Nations’. Along with this, there will be sufficient time to ‘develop a permanent framework for future cryptocurrency mining operations.’
Energy, Mines and Low Carbon Innovation Minister, Josie Osborne said, “Cryptocurrency mining consumes massive amounts of electricity to run and cool banks of high-powered computers 24/7/365, while creating very few jobs in the local economy.”
“We are suspending electricity connection requests from cryptocurrency 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,” he added.
About 21 projects were reported to apply to BC Hydro requesting power supply. Overall, 1,403 megawatts will be used by these entities that are now expected to be put on hold until the suspension. Crypto companies anticipate receiving some part of the affordable and clear energy from the electric utility.
The Province has instructed the B.C. Utilities Commission to accept BC Hydro’s request for temporary relief from its obligations to provide service to new cryptocurrency mining projects for 18 months while the government develops a permanent framework in order to protect B.C.’s clean and affordable electricity.
Source: https://www.thecoinrepublic.com/2022/12/22/crypto-mining-in-canada-province-witnessing-a-challenge/