Mayors join finance minister to discuss, share feedback on landmark tax

Province hits pause on electrical connections for cryptocurrency mining

December 21, 2022 at 11:34 am  BC, News, Politics, Provincial

To preserve British Columbia’s supply of clean electricity to support the Province’s climate action and economic goals, BC Hydro will suspend electricity-connection requests from cryptocurrency mining operations for 18 months.

The temporary suspension will preserve B.C.’s electricity supply, while giving government and BC Hydro sufficient time to engage with industry and First Nations, and develop a permanent framework for any future cryptocurrency mining operations.

“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,” said Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation. “We are suspending electricity connection requests from cryptocurrency mining operators to preserve our electricity supply for people who are switching to 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.”

B.C.’s clean, affordable electricity has attracted unprecedented interest from cryptocurrency miners. Currently, 21 projects are requesting a total of 1,403 megawatts that will be temporarily suspended. That is equivalent to the energy needed to power approximately 570,000 homes, or 2.1 million electric vehicles, per year in B.C.

If these connections were to continue unchecked, much of BC Hydro’s available energy to use strategically in support of British Columbia’s CleanBC goals could be eroded by cryptocurrency mining projects, with little remaining to electrify projects that have greater jobs, economic development and greenhouse gas reduction benefits.

To preserve B.C.’s clean and affordable electricity, the Province has directed the B.C. Utilities Commission to accept an application from BC Hydro for temporary relief from its obligations to provide service to new cryptocurrency mining projects for 18 months while government develops a permanent framework.

New cryptocurrency mining projects may not initiate the process of connection with BC Hydro, and projects at early stages of the connection process will also be halted. Cryptocurrency mining projects that are operational, and a small number of projects that are well advanced in BC Hydro’s connection process, will not be affected. The connection of other types of projects that do not mine cryptocurrency will not be affected.

Quick Facts:

  • BC Hydro provides service to seven cryptocurrency mining operations, with six more in advanced stages of connection to the system, totalling 273 megawatts.
  • In November 2022, the Manitoba government suspended new connections to the electricity grid for cryptocurrency mining while it analyzed the potential for a regulatory framework for approving large connections to the grid.
  • After suspending cryptocurrency mining connection requests to study its effects on electricity supply, Hydro-Québec implemented a new framework for cryptocurrency service that includes higher rates and a cap on the amount of electricity available for cryptocurrency mining.

Learn More:

To learn more about the potential implications of unchecked growth of cryptocurrency mining operations, read a new report from BC Hydro titled Crypto conundrum: Why cryptocurrency mining could challenge B.C.’s clean transition:
https://www.bchydro.com/content/dam/BCHydro/customer-portal/documents/news-and-features/bchydro-crypto-energy-report.pdf

View the full article from the original source

No conversations yet

Activity Stream

Fri, Jan 27, 2023 at 9:00 am - Doug Smith posted on their blog: Rivers Trail in January – Kamloops Trails
Thu, Jan 26, 2023 at 9:37 pm - David Suzuki posted on their blog: Climate crisis? Who knew? Turns out the oil industry did
Wed, Jan 25, 2023 at 8:52 am - Doug Smith posted on their blog: Rabbit Island in Winter – Kamloops Trails
Sun, Jan 22, 2023 at 9:00 am - Doug Smith posted on their blog: A Winter Hike at Cooney Bay
Fri, Jan 20, 2023 at 8:40 am - Doug Smith posted on their blog: Out and About – Tranquille River Trail
Wed, Jan 18, 2023 at 6:43 pm - David Suzuki posted on their blog: Fossil gas is not healthy for children and other living things
Tue, Jan 17, 2023 at 9:00 am - Doug Smith posted on their blog: Stomping Around Anderson Creek – Kamloops Trails
Tue, Jan 17, 2023 at 9:00 am - Doug Smith posted on their blog: Bush Lake Stomps – Kamloops Trails
Sun, Jan 15, 2023 at 9:00 am - Doug Smith posted on their blog: Walloper Creek Loop Snowshoe – Kamloops Trails
Fri, Jan 13, 2023 at 10:49 am - Darryl Schmidt posted a comment on Slow No Tempo’s Annual Singing Valentine Fundraiser Returns
Full Stream