Crypto-Mining Activities On a Break In Quebec. Province Introduces New Power-Consumption Rules and Fees
According to the latest report from Reuters, Canada’s Quebec province has officially stopped approving new crypto-mining projects having witnessed an unprecedented demand. the availability of cheap hydroelectricity in the province has attracted a large number of crypto-mining companies and individuals in the last year, especially after China banning all operations in the country.
Quebec officials said that the province has suspended new registrations as they are working towards implementing new regulations and rules and is also considering to increase the energy costs.
Hydro-Quebec, the state-owned power provider for the province also said that it would be limiting the total supply for crypto-mining activities to 500MW. This is a huge drop considering the existing supply of 17000 MW being used for mining activities.
According to the official press release, Hydro Quebec has also requested Quebec’s energy board in order to create new rates which will "help maximize the energy producer's revenue.” Pierre Moreau, Quebec’s Minister of Energy and Natural Resources said:
“The measures announced today represent a responsible, prudent and practical approach to welcome top businesses from the blockchain tech sector, to contribute to the economic development of other sectors and to create spinoffs throughout Québec, while ensuring energy supply for all Quebecers.”
Éric Filion, President of Hydro-Québec Distribution said:
“The blockchain industry is a promising avenue for Hydro-Québec. Guidelines are nevertheless required to ensure that the development of this industry maximizes spinoffs for Québec without resulting in rate increases for our customers. We are actively participating in the Régie de l’énergie’s process so that these guidelines can be produced as quickly as possible.”
The press release also states that “In coming days, Hydro-Québec will file an application with the Régie de l’Énergie proposing a selection process for blockchain industry projects in light of the concerns expressed by the Québec government in its Order-in-Council. The application will highlight the importance of rapidly moving forward so as not to miss the opportunities offered by this industry.”
Quebec took a similar stand earlier this year citing similar reasons of huge energy demand by the miners. At that time, Quebec said that the province would unable to meet demand if it starts considering every project that has applied for the approval.
As a part of the new regulations and rules, Hydro-Quebec will be choosing the best of the companies wanting to develop a facility in the region.