The British Columbia government has banned new cryptocurrency mining connections to its hydroelectric grid, citing unprecedented demand for electricity.
The British Columbia (BC) government announced in a statement Monday a series of new bills aimed at stimulating the economy and helping national power company BC Hydro deal with power supply issues.
“There are significant opportunities in British Columbia’s traditional natural resource sectors such as mining, natural gas and LNG, as well as emerging sectors such as data centers and artificial intelligence (AI). The success of proposed large-scale projects will depend on access to reliable, clean electricity at competitive industrial rates,” the report reads.
As part of the regulatory changes that will take effect in fall 2025, there will be “limitations on the power available to data centers and AI” as well as a “permanent ban on new connections to BC Hydro’s power grid” for crypto miners.
“We are seeing unprecedented demand from traditional and emerging industries. The province’s strategy will enable BC Hydro to responsibly manage this growth, maintain grid reliability and ensure our energy future is clean and affordable,” said BC Hydro President and CEO Charlotte Measer.
BC Hydro is the region’s main electricity provider, serving more than 5 million people, or about 95% of the local population, according to its website.
However, the BC government has a more positive outlook on data centers and AI than crypto mining, with the announcement explaining that it seeks to help these two emerging sectors grow “in a way that provides the greatest benefit to British Columbians.”
However, when it comes to cryptocurrencies, the announcement’s background information outlines that the ban on new hydropower grid connections by crypto miners is due to the “disproportionate energy consumption and limited economic benefits” this sector provides.
Crypto mining analysts say otherwise
The crypto mining sector has faced criticism from some governments and organizations over its energy consumption, but many in the sector are fighting back against misconceptions.
Figures like Bitcoin environmental activist Daniel Batten have fought hard to correct the negative narrative surrounding crypto mining and educate people on how to incorporate Bitcoin mining into energy and climate efforts.
There was a complete ban a long time ago.
While other Canadian provincial governments, such as Vancouver, are moving to become “Bitcoin-friendly” cities, British Columbia is actively considering banning crypto miners from accessing its power grid.
Related: Bitcoin mining just got easier – but not for long as hashrate rebounds violently
It first introduced an initial 18-month ban on new crypto mining grid connections in December 2022, with the aim of developing a permanent framework over time that balances the needs of crypto miners, residents and businesses in the region.
However, that seems to have evolved into a complete ban with the latest update.
It remains to be seen whether this will affect the future plans of existing companies in the region, such as Bitfarms and Airen, which have set up data centers specializing in Bitcoin mining operations and AI in the region.
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