British Columbia Province to Regulate Electricity Supply for Crypto Miners

CryptoNews.com

2024-04-11 23:30:18

Sujha Sundararajan

Last updated:

April 12, 2024 03:30 EDT | 1 min read

Canadian province of British Columbia is seeking to regulate electricity use by crypto miners, due to their “unchecked growth.”

Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation, said Thursday that the province is working to address high energy consumption by crypto miners in the region. This creates very few jobs or economic opportunities, she added.

Per the ministry’s statement, the legislative amendment would allow the government to prohibit or limit electricity usage for crypto miners. This is because the “unchecked growth” of the sector could make it expensive to supply electricity to homes and businesses.

In December 2022, the province has called for a suspension of new electricity connections for cryptocurrency mining for 18 months.

That said, around 21 projects were temporarily suspended, which had requested total of 11,700 gigawatt hours of power per year.

According to a local report, minister Osborne noted that the province is working with British Colombia Hydro, the provincial power utility, to ensure there is enough electricity for the province’s future.

“That includes regulating electricity service for energy-intensive cryptocurrency miners that create very few local jobs.”

In February, a provincial supreme court ruled in favor of BC Hydro’s moratorium on crypto mining projects as ‘reasonable.’

British Columbia Seeks to Preserve Electricity

In December 2022, BC province became the third in Canada to impose restrictions on crypto mining after Quebec and Manitoba. BC noted that it will not approve new mining connections to its power grid for 18 months.

Osborne noted at the time that the provision is seeking to preserve electricity. Mainly for “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.”

BC is the fourth largest producer of electricity in Canada, having estimated generating capacity of 18 250 megawatts (MW).

However, a report from the North American Electric Reliability Corporation stated that B.C. is a risk to generating enough power consistently in the future. The report said by 2026 that increasing demand and generation constraints could become an issue.

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