British Columbia takes strong measures against cryptocurrency miners due to their excessive energy usage
The Canadian government of British Columbia is taking steps to regulate the electricity usage of cryptocurrency miners due to concerns about excessive energy consumption and limited economic advantages. Josie Osborne, the Minister of Energy, Mines, and Low Carbon Innovation, announced on April 11 that the province is addressing the issue of high energy consumption associated with crypto mining, which she stated generates minimal job opportunities and economic benefits. The ministry is proposing a legislative amendment that would grant the government the authority to restrict or regulate the use of electricity by crypto miners. This is in response to the sector’s uncontrolled growth, which could lead to increased costs in supplying electricity to homes and businesses. In December 2022, the province already suspended new electricity connections for crypto mining for a period of 18 months, affecting around 21 projects that had requested a total of 11,700 gigawatt hours of power annually. Minister Osborne emphasized that the government is working with British Columbia Hydro, the provincial power utility, to ensure sufficient electricity supply for the future, including regulating electricity service for energy-intensive crypto miners. The provincial Supreme Court ruled in February that BC Hydro’s suspension of crypto mining operations was reasonable. British Columbia is the third jurisdiction in Canada, following Quebec and Manitoba, to implement limitations on crypto mining. The province aims to preserve electricity for electric vehicles, heat pumps, businesses, and industries that are undertaking electrification projects to reduce carbon emissions and create job opportunities. British Columbia is the fourth largest electricity producer in Canada, with a generating capacity of approximately 18,250 megawatts. However, a report by the North American Electric Reliability Corporation warns that BC could face challenges in power generation reliability due to generation constraints and increasing demand by 2026. This move by the Canadian government aligns with global trends, as other countries like Iceland are also shifting their renewable energy efforts away from crypto mining towards other sectors such as agriculture. British Columbia is reallocating its energy resources to more sustainable and economically beneficial areas.
