The local government of British Columbia is banning new cryptocurrency mining connections to the hydroelectric grid due to unprecedented electricity demand.
In a statement on Monday, the British Columbia (BC) government announced a series of new legislation aimed at stimulating the economy and helping the state-owned utility provider BC Hydro address electricity supply issues.
"The traditional natural resource sectors in British Columbia, including mining, natural gas, and liquefied natural gas, as well as emerging sectors like data centers and artificial intelligence (AI), present significant opportunities. The success of proposed major projects depends on obtaining reliable, clean power at competitive industrial rates," they wrote.
As part of regulatory changes that will take effect in the fall of 2025, there will be "limits on the power available to data centers and AI," and a "permanent ban on new BC Hydro connections to the grid for cryptocurrency miners."
BC Hydro President and CEO Charlotte Mitha noted, "We are seeing unprecedented demand from both traditional and emerging industries. The province's strategy allows BC Hydro to responsibly manage this growth, keeping our grid reliable and our energy future clean and affordable."
According to its website, BC Hydro is the region's primary electricity supplier, serving over 5 million people and covering about 95% of the local population.
However, the BC government is more optimistic about the prospects for data centers and AI than for cryptocurrency mining. The announcement explained that it is seeking to help these two emerging sectors grow "in a way that brings the greatest benefit to the people of British Columbia." In contrast, the background information in the announcement outlined that the reason for banning new connections to the hydroelectric grid for cryptocurrency miners is the "disproportionate energy consumption and limited economic benefits" provided by the industry.
While the cryptocurrency mining industry has faced criticism from some governments and organizations due to energy consumption, many in the industry have been pushing back against this misunderstanding.
Figures like Bitcoin environmentalist Daniel Batten have been working to correct the negative narrative surrounding cryptocurrency mining and educate people on how Bitcoin mining fits into energy climate action initiatives.
Other provincial governments in Canada, like Vancouver, have been striving to become "Bitcoin-friendly cities," but British Columbia has been actively seeking to ban cryptocurrency miners from accessing its grid.
As early as December 2022, it introduced an initial 18-month ban on new cryptocurrency mining grid connections as it sought time to develop a permanent framework that balances the needs of cryptocurrency miners, residents, and businesses in the region.
However, with the latest update, this seems to have evolved into a complete ban.
It remains to be seen whether this will impact the future plans of existing companies in the region, such as Bitfarms and Iren, both of which have established Bitcoin mining operations or AI-focused data centers there.
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Original: “British Columbia Permanently Bans Cryptocurrency Mining Connections to the Grid”
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