British Columbia Seeks to Regulate Electricity Use by Crypto Miners due to “Unchecked Growth”
The Canadian province of British Columbia is taking steps to regulate electricity use by crypto miners in order to address their “unchecked growth.” Josie Osborne, Minister of Energy, Mines, and Low Carbon Innovation, announced on Thursday that the province is working to tackle the high energy consumption by crypto miners, which she says creates very few jobs or economic opportunities.
The proposed legislative amendment would give the government the authority to prohibit or limit electricity usage for crypto miners. This move comes as the rapid growth of the sector could lead to increased costs in supplying electricity to homes and businesses.
In December 2022, British Columbia called for a suspension of new electricity connections for cryptocurrency mining for 18 months. This resulted in the temporary suspension of around 21 projects that had requested a total of 11,700 gigawatt hours of power per year.
Minister Osborne emphasized that the province is collaborating with British Columbia Hydro, the provincial power utility, to ensure a sufficient electricity supply for the province’s future needs. She stated, “That includes regulating electricity service for energy-intensive cryptocurrency miners that create very few local jobs.”
In February, a provincial supreme court ruled in favor of BC Hydro’s moratorium on crypto mining projects as ‘reasonable.’
British Columbia is the third province in Canada to impose restrictions on crypto mining, following Quebec and Manitoba. The province aims to preserve electricity for electric vehicles, heat pumps, and businesses and industries undertaking electrification projects to reduce carbon emissions and create jobs and economic opportunities.
Despite being the fourth largest producer of electricity in Canada with an estimated generating capacity of 18,250 megawatts, a report from the North American Electric Reliability Corporation has raised concerns about B.C.’s ability to consistently generate enough power in the future. By 2026, increasing demand and generation constraints could become a significant issue.
