A Canadian state-owned utility company suspended crypto miners’ requests for new electricity connections. In a statement conveyed on December 21, the British Columbia government approved the eighteen-month suspension halting crypto miners’ applications for new connections.
Energy Ministry Concerns on Straining BC Hydro Energy Supply
The government acknowledged that pausing new connections will enable BC Hydro to formulate a viable framework that balances the energy requirements among residents, crypto miners, and businesses. The Minister in charge of Energy, Mines, and Low Carbon Innovation, Josie Osborne, lauded the decision to preserve the provision of clean energy. Osborne considered that prioritizing business and residents’ requirements is necessary, particularly those creating environmentally friendly jobs.
Osborne lamented that crypto mining involves an energy-intensive activity citing the power spent in running and cooling banks utilized in high-powered computers every day of the year. He regretted the intensive energy requirements in crypto mining despite generating few employment opportunities within the local economy.
BC Hydro reported that it serves seven crypto miners. The utility company indicated six more crypto-mining operators are at the advanced phase of the connection. The additional six connections will increase the consumption by 273 megawatts, which BC Hydro has assured is exempted from the 18 months suspension.
Also read:BC Hydro Ground for Suspending New Connections
Minister Osborne emphasized that BC Hydro’s electricity connections process is unavailable for new crypto miners. He added that the ban would affect crypto mining operations at the initial connection process. The announcement will affect 21 crypto projects whose total electricity energy requirements are 1,403MW. Osborne decried that the energy requirements are equivalent to the power of 570000 households. Besides, such energy could power 2.1 million vehicles annually.
A report issued by the British Columbia power authority warned that the crypto-mining operations’ new connection requests were at unprecedented levels. The December report warned that honoring the requests could strain BC Hydro’s existing energy supply to greener pursuits. The report noted that such occurrences could prompt the power authority to impose higher rates on the BC residents.
Unprecedented Energy Requirements
The decision by the British Columbia power authority matches an initiative undertaken by New York state to apply a moratorium targeting proof-of-work mining activities. Besides, it prohibited licensing new crypto mining operations that do not embrace 100% renewable energy. The bans imposed by the New York and British Columbia power authorities prioritize protecting residents from incurring higher electricity charges. The initiatives could trigger a wave to suspend new connections, particularly with Bitcoin’s 204.5 TWh electricity consumption estimated to eclipse Finland’s annual power consumption.
Editorial credits: Mffoto/Shutterstock.com
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