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The administration of British Columbia is prohibiting new cryptocurrency mining connections to the hydroelectric power grid, citing extraordinary electricity requirements.
In a release on Monday, the British Columbia (BC) administration declared a series of new regulations aimed at boosting the economy and assisting the state-owned electric utility company BC Hydro in managing its electricity supply.
“There exist substantial prospects in British Columbia’s traditional natural resource domains, including mining, natural gas, and LNG, as well as in burgeoning sectors, such as data centers and artificial intelligence (AI). The accomplishment of proposed major initiatives relies on access to dependable, clean electricity at a competitive industrial rate,” it stated.
As part of the regulatory adjustments set to commence in fall 2025, there will be “restrictions on the energy accessible for data centers and AI,” along with a permanent “prohibition on new BC Hydro connections to the electricity grid” for cryptocurrency miners.
“We’re observing unparalleled demand from both traditional and emerging industries. The Province’s plan enables BC Hydro to responsibly handle this expansion, maintaining the reliability of our grid and ensuring our energy future remains clean and affordable,” remarked Charlotte Mitha, president and CEO of BC Hydro.
BC Hydro serves as the primary energy provider in the area, catering to over 5 million individuals, approximately 95% of the local populace, as noted on its website.
The BC administration has adopted a more favorable perspective for data centers and AI compared to cryptocurrency mining; the announcement clarified its aim to support the growth of these two emerging sectors “in a manner that delivers the greatest benefit to the residents of British Columbia.”
However, with respect to cryptocurrency, background information in the announcement indicates that the prohibition on new hydro grid connections for miners is due to “disproportionate energy consumption and limited economic advantage,” presented by the industry.
Crypto mining analysts offer a different perspective
While the cryptocurrency mining industry has received criticism from certain governments and organizations regarding energy usage, many within the sector are countering the misunderstandings.
Bitcoin environmentalist Daniel Batten have strenuously worked to correct the negative narratives surrounding crypto mining and to inform on ways that Bitcoin mining can align with energy climate action initiatives.
A complete ban has been on the horizon
Other provincial Canadian administrations like Vancouver have been working towards becoming a “Bitcoin-friendly city,” but British Columbia has been actively seeking to prohibit cryptocurrency miners from accessing its energy grid.
Related: Bitcoin mining has just become easier — but not for long, as hashrate surges back
Initially, it implemented an 18-month ban on new connections for crypto mining to the grid back in December 2022, as it aimed to take the time to establish a lasting framework that would balance the needs of crypto miners, inhabitants, and businesses in the area.
Nevertheless, this has seemingly transformed into a full ban with the latest update.
It remains to be seen if this will influence the future intentions of existing companies in the area, such as Bitfarms and Iren, which both operate Bitcoin mining operations or have AI-centric data centers established there.
Magazine: 7 reasons why Bitcoin mining is an unwise business decision
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