British Columbia cited the priority given to clean energy and job creation as key reasons for halting crypto mining operations.
A government electric utility in the Canadian province of British Columbia will suspend all new electricity requests from cryptocurrency miners for a period of 18 months.
The BC government made the announcement in a statement Dec. 21, saying the pause will allow the government and BC Hydro to develop a permanent framework that better aligns the needs of crypto miners and their residents and businesses can bring. from the region.
Josie Osborne, Secretary of State for Energy, Mines and Low-Carbon Innovation, said the move was taken to preserve the clean energy it provides to its residents and businesses that creates jobs and is greener:
“Cryptocurrency mining consumes massive amounts of electricity to run and cool banks with high-performance computers 24/7, while creating very few jobs in the local economy.”
BC Hydro currently provides services to seven crypto mining farms. Six more are in the advanced stage of system connection with a total of 273 megawatts – these should not be touched.
However, new cryptocurrency mining projects will not be able to initiate the connection process with BC Hydro, and projects in the early stages of the connection process will also be halted, he said, adding that there are 21 cryptocurrency mining projects that are currently a total of 1,403 megawatts of electricity.
The ministry found that this is equivalent to the energy needed to power about 570,000 homes or 2.1 million electric vehicles per year in the province.
Related: BTC energy consumption increases by 41% in 12 months, increasing regulatory risk
The British Columbia Hydro and Electric Authority released a report titled “Crypto Conundrum” in December 2022, warning that an “unprecedented level” of trade requests to mine cryptocurrencies could strain the available energy supply and result in higher electricity prices for the residents could lead. of British Columbia he remarked:
“BC Hydro’s available energy could be challenged by cryptocurrency mining operations, which could mean less energy for greener activities like electrification or hydrogen production and higher electricity tariffs for British Columbia residents.”
Statista reported that Bitcoin’s annual electricity consumption had hit an all-time high in early 2022, estimated to be higher than Finland’s total electricity consumption, which is estimated at “204.5 TWh per year.”
New York recently became the first US state to impose a moratorium on Proof-of-Work (PoW) mining, banning all new mines that are not 100% dependent on renewable energy.