Brakes pumped on crypto
Photo: Contributed
A bitcoin mining facility in Mackenzie, B.C.
The provincial government is pumping the brakes on new cryptocurrency mining operations.
In the face of a massive demand for electricity, BC Hydro will be suspending connection requests from cryptocurrency miners for 18 months.
“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 relatively affordable electricity rates has attracted “unprecedented interest” from the cryptocurrency sector. The government says they currently have 21 proposed projects requesting a total of 1,403 megawatts. That is equivalent to the energy needed to power approximately 570,000 homes, or 2.1 million electric vehicles, per year in B.C.
The government says if BC Hydro were to proceed with those connections, the province’s electricity supply and transition to a green economy would be threatened.
The temporary suspension will give BC Hydro time to engage with industry and First Nations to develop a permanent framework for any future cryptocurrency mining operations.
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 most well-known of the cryptocurrencies, bitcoin, is believed to consume as much electricity in a year as the entire country of Norway.