Key Takeaways:
- According to the energy ministry of British Columbia, new power demands from cryptocurrency mining companies will momentarily be suspended.
- The operation of current cryptocurrency mining operations and a few projects that are further along in the connection process with BC Hydro won’t be impacted.
Province of Canada In order to protect its supply of clean electricity, British Columbia instructs BC Hydro to halt electrical-connection requests from cryptocurrency mining enterprises. In order to assist the Province’s economic and environmental action goals, the moratorium is anticipated to last for 18 months.
The action aims to protect B.C.’s hydroelectricity-based power supply for businesses who support the province’s climate goals. According to the energy ministry, the injunction gives the province administration and First Nations time to develop a structure for a strategy on crypto mining.
According to the Minister of Energy, Mines, and Low Carbon Innovation for British Columbia, the area’s crypto mining operations consume a significant amount of electricity, and the data centres only offer a small number of jobs to locals.
The prohibition would apply to cryptocurrency miners that have not yet connected to the grid or who are just starting the process. Existing miners would not be impacted, nor would those who are “well along” in the BC Hydro connection process.
Miners of cryptocurrencies have shown an unprecedented level of interest in B.C.’s clean, affordable electricity. There are currently 21 projects requiring 1,403 megawatts in total, which will be immediately halted. That translates to the energy required to fuel 2.1 million electric vehicles or almost 570,000 houses in British Columbia each year.
The year 2022 has been rather challenging for the global financial system, and the bitcoin mining sector is also experiencing the effects of the crypto winter, with major drops in revenue and hash rate.
Iris Energy, a cryptocurrency mining company with offices in Sydney, recently announced that it is in default on a $108 million loan, forcing the shutdown of 3.6 EH/s of its mining capacity.
Another well-known company, Core Scientific, the biggest publicly traded bitcoin mining company in the US, reported a $400 million quarterly loss, bringing its total losses for 2022 alone to an astounding $1.7 billion.
The ministry claims that bitcoin miners have expressed “unprecedented” interest in using British Columbia’s hydroelectric energy grid. Both new bitcoin mining initiatives and those that are just becoming connected to BC Hydro will come to an end.
