Cryptocurrency

British Columbia expected to stop new cryptocurrency-based electricity-connection requests

A state-based electricity utility provider, belonging from Canadian province of British Columbia, is expected to stop new electricity-connection requests from cryptocurrency miners for 18 months, as reported by Cointelegraph.

According to Cointelegraph, on December 21, 2022, British Columbia government announced that the pause will permit the government and BC Hydro to create a framework to ensure balance between crypto miners and residents and businesses of the area. “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,” Josie Osborne, minister, Energy, Mines and Low Carbon Innovation, stated.

On the basis of information by Cointelegraph, currently, BC Hydro serves seven crypto-mining operations. It is believed that six more have reached advanced levels of connection to the system, a sum total of 273 megawatts. Reportedly, new cryptocurrency mining projects will be unable to initiate the process with regard to BC Hydro, and projects related to the early stages of the connection process will also be stopped. Reports have mentioned that there are 21 cryptocurrency mining projects which require a total of 1,403 megawatts of electricity.

Moreover, Cointelegraph noted that in December, 2022, British Columbia hydro and power authority released a report called Crypto conundrum, which warned of an “unprecedented level” of requests for cryptocurrency mining operations which could result in higher electricity rates for British Columbia residents. 

“BC Hydro’s available energy could be challenged by cryptocurrency mining operations, which could mean less energy for greener pursuits such as electrification or hydrogen production, and higher electricity rates for British Columbians,” the report highlighted.

(With insights from Cointelegraph)

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