The government of British Columbia is prohibiting new crypto mining connections to the hydro power grid, citing an unprecedented surge in electricity demand.
In a statement released on Monday, the British Columbia (BC) government revealed a series of new regulations aimed at stimulating the economy and assisting the state-owned electric utility provider BC Hydro in managing power resources.
“There are significant prospects in British Columbia’s established natural resource sectors, including mining, natural gas, and LNG, as well as in emerging sectors like data centers and artificial intelligence (AI). The success of proposed major initiatives depends on having access to dependable, clean electricity at competitive industrial rates,” the government noted.
Under the new regulations, which will take effect in fall 2025, there will be “limitations on the power available for data centers and AI,” along with a permanent “ban on new BC Hydro connections to the electricity grid” for crypto miners.
“We are experiencing unprecedented demand from both traditional and emerging industries. The Province’s strategy enables BC Hydro to handle this growth responsibly, ensuring our grid remains reliable and our energy future clean and affordable,” stated Charlotte Mitha, president and CEO of BC Hydro.
BC Hydro is the primary power supplier in the area, catering to more than 5 million people, which constitutes roughly 95% of the local population, as indicated on its website.
The BC government has adopted a more optimistic approach towards data centers and AI compared to crypto mining, indicating that it aims to foster the growth of these two emerging sectors “in a manner that yields the greatest benefit to the people of British Columbia.”
In contrast, background information in the announcement states that the ban on new hydro grid connections for crypto miners is attributed to “disproportionate energy usage and limited economic advantage” that the sector provides.
Crypto mining analysts offer a different perspective
Despite facing criticism from various governments and organizations regarding energy consumption, many in the crypto mining sector are actively addressing these misconceptions.
Figures such as Bitcoin environmentalist Daniel Batten have been working diligently to counter negative perceptions surrounding crypto mining and promote ways to integrate Bitcoin mining within energy climate action initiatives.
A long-awaited outright ban
While other provincial governments in Canada, such as Vancouver, have been working to position themselves as “Bitcoin-friendly cities,” British Columbia has been actively pursuing a ban on cryptocurrency miners’ access to its power grid.
Related: Bitcoin mining just got easier — but not for long, as hashrate rebounds
The province initially implemented an 18-month ban on new crypto mining grid connections back in December 2022 to allow time for the development of a permanent framework that balances the needs of crypto miners, residents, and businesses in the region.
However, this has seemingly escalated into an outright ban with the latest update.
It remains unclear whether this will affect the future plans of existing companies in the region, such as Bitfarms and Iren, which have established Bitcoin mining operations or AI-focused data centers there.
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