British Columbia imposed an 18-month suspension on new electricity connection requests from crypto miners to support its climate change and most of its economic growth objectives.
The latest news said that the Canadian province of British Columbia suspended new electricity connection requests from crypto miners for 18 months, the Ministry of Energy, Mines, and Low Carbon Innovation said on December 22. This decision comes as British Columbia strives to support its climate change and economic growth aims and enable the government to develop a permanent regulatory infrastructure for the crypto-mining sector.
British Columbia Stops New Crypto Mining Operations To Support Climate Change And Economic Goals
British Columbia confirmed an 18-month suspension for all new electricity connection requests from crypto mining companies to facilitate its climate change and economic efforts. This move comes as the Canadian province hopes to alleviate power restraints and get more time for its key electricity distributor, BC Hydro, to come up with a permanent regulatory infrastructure for miners.
Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation, stated:
“Cryptocurrency mining consumes massive amounts of electricity to run and cool banks of high-powered computers 24/7/365, while creating very few jobs in the local economy.”
21 crypto mining companies have already submitted requests for up to 1,403 megawatts of electric power, based on the province’s Ministry of Energy, Mines, and Low Carbon Innovation. That figure is enough to power nearly 570,000 homes annually, or 2.1 million electric vehicles, the ministry commented.
Seven existing crypto miners and six more that are currently in the advanced stages of gaining access to electricity will not be impacted by the moratorium, the ministry also said. The crypto-mining projects consume up to 273 megawatts per year.
Leaving all these connections unmonitored may considerably hamper British Colombia’s climate change goals. It would minimize the available electricity to power projects with greater greenhouse gas reduction advantages, economic development, and a highly significant number of jobs.
With that said, British Columbia has now decided “to accept an application from BC Hydro for temporary relief from its obligations to provide service to new cryptocurrency mining projects” while the authorities come up with a permanent regulatory infrastructure.
Crypto Power Consumption Poses Risks Amid Climate Change Hiccups
The issue that comes with considerable energy consumption by crypto mining projects was brought up earlier this year after reports confirmed that Bitcoin mining was responsible for around 0.08% of global CO2e emissions. Another research conducted by Congressional democrats indicated that the United States crypto miners consume almost as much electricity as every home in Houston, Texas.
These findings have encouraged global regulators to address the issue as the climate crisis seems to remain one of the most pressing issues of our current generation. In October 2022, the European Commission stated that it is working on an energy efficiency measure for cryptos to mitigate consumption and “encourage more environmentally friendly cryptosystems.”
British Columbia officials stated that nearly 87% of its electricity comes from hydropower, which has sparked “unprecedented interest” from crypto mining firms. The limitations follow similar moves by utilities in Manitoba and Quebec.