The 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 centers and artificial intelligence (AI). The success of proposed major projects hinges on access to reliable, clean electricity at a competitive industrial rate,” it wrote.
As part of the regulatory changes that will go into effect in fall 2025, there will be “limits on the power available for data centers 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,” said Charlotte Mitha, president and CEO of BC Hydro.
BC Hydro is the main power supplier in the region, serving more than 5 million people, around 95% of the local population, as per its website.
The BC government took a more positive outlook for data centers 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 say otherwise
While the crypto mining sector has faced flak from some governments and organizations over energy consumption, many in the sector have been fighting back on the misconception.
Figures such as Bitcoin environmentalist Daniel Batten have fought hard to rectify negative narratives surrounding crypto mining and educate on ways that Bitcoin mining can be incorporated among energy climate action initiatives.
Outright ban has been a long time coming
Other provincial Canadian governments like Vancouver have been moving to become a “Bitcoin-friendly city,” but British Columbia has actively been looking to ban access of cryptocurrency miners’ access to its power grid.
Related: Bitcoin mining just got easier — but not for long, as hashrate roars back
It first rolled out an initial 18-month ban on new crypto mining grid connections back in December 2022, as it sought to take the time to develop a permanent framework balancing the needs of crypto miners, residents and business in the region.
However, that has seemingly devolved into the outright ban with the latest update.
It is yet to be seen if this will have any impact on the future plans of existing firms in the region, such as Bitfarms and Iren, which both have Bitcoin mining operations or AI-focused data centers set up there.
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