Government Cites Unprecedented Electricity Demand
The local government of British Columbia is banning new crypto mining connections to the hydro power grid, citing unprecedented electricity demand. In a statement on Monday, the British Columbia (BC) government announced a set of new legislation aimed at stimulating the economy and helping the state-owned electric utility provider BC Hydro address its power availability.
“There are significant opportunities in British Columbia’s traditional natural resource sectors, including mining, natural gas and LNG, and in emerging sectors, such as data centres and artificial intelligence (AI). The success of proposed major projects hinges on access to reliable, clean electricity at a competitive industrial rate,” the government stated.
As part of the regulatory changes that will go into effect in fall 2025, there will be set “limits on the power available for data centres and AI,” as well as a permanent “ban on new BC Hydro connections to the electricity grid” for crypto miners.
“We’re seeing unprecedented demand from traditional and emerging industries. The Province’s strategy empowers BC Hydro to manage this growth responsibly, keeping our grid reliable and our energy future clean and affordable,” noted Charlotte Mitha, president and CEO of BC Hydro.
BC Hydro is the main power supplier in the region, serving more than 5 million people over around 95% of the local population, as per its website.
The BC government took a more positive outlook for data centres and AI than crypto mining though, with the announcement explaining that it is looking to help these two emerging sectors grow “in a manner that results in the greatest benefit to people in British Columbia.” With crypto, however, background information in the announcement outlines that the ban on new hydro grid connections by crypto miners is due to “disproportionate energy consumption and limited economic benefit,” offered by the sector.
Crypto Mining Analysts Disagree with Government's Assessment
While the crypto mining sector has faced criticism from some governments and organizations over its energy consumption, many within the sector have been actively countering these perceptions. Figures such as Bitcoin environmentalist Daniel Batten have worked to rectify negative narratives surrounding crypto mining and educate on how Bitcoin mining can be incorporated into energy climate action initiatives.
Previous Restrictions Paved the Way for Outright Ban
Other provincial Canadian governments, such as Vancouver, have been moving to become a "Bitcoin-friendly city." In contrast, British Columbia has actively been looking to ban cryptocurrency miners' access to its power grid. The province first implemented an initial 18-month ban on new crypto mining grid connections in December 2022, seeking time to develop a permanent framework that would balance the needs of crypto miners, residents, and businesses in the region.
This previous restriction has seemingly evolved into the current outright ban with the latest announcement. It remains to be seen if this new regulation will impact 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 established there.