The government of British Columbia has decided to prohibit new crypto mining connections to the hydro power grid due to an extraordinary surge in electricity demand.
In a statement released on Monday, the British Columbia (BC) government unveiled new legislation aimed at boosting the economy and assisting the state-owned electric utility, BC Hydro, in managing its power availability.
“There are significant opportunities in British Columbia’s traditional 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 projects relies on access to reliable, clean electricity at competitive industrial rates,” it noted.
As part of the regulatory adjustments set to take effect in fall 2025, there will be “restrictions on the power allocated 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 empowers BC Hydro to handle this growth responsibly, ensuring our grid remains reliable and our energy future is clean and affordable,” stated Charlotte Mitha, president and CEO of BC Hydro.
BC Hydro serves as the primary power supplier in the region, catering to over 5 million people—around 95% of the local population, as noted on its website.
While the BC government has adopted a more favorable stance towards data centers and AI, it seems to be less supportive of crypto mining, highlighting its intent to assist these two emerging sectors in growing “in a manner that yields the greatest benefit for the residents of British Columbia.”
In contrast, the announcement points out that the justification for banning new hydro grid connections for crypto miners stems from the sector’s “disproportionate energy consumption and limited economic advantages.”
Crypto mining experts disagree
Although the crypto mining industry has faced criticism from various governments and organizations regarding energy usage, many advocates within the sector have been actively challenging this misconception.
Figures like Bitcoin environmentalist Daniel Batten have been vigorously working to counter negative narratives surrounding crypto mining and educate about how Bitcoin mining can be integrated into energy climate action initiatives.
Outright ban has been anticipated
While other provincial governments in Canada, like Vancouver, have been striving to become “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 roars back
Back in December 2022, an initial 18-month ban was enforced on new crypto mining grid connections, allowing time to establish a permanent framework balancing the needs of crypto miners, residents, and businesses in the region.
However, this initial approach has seemingly morphed into an outright ban with the latest announcement.
It remains uncertain whether this will affect the future plans of existing firms in the region, such as Bitfarms and Iren, both of which have Bitcoin mining operations or AI-focused data centers there.
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