Introduction to Cryptocurrency Mining
British Columbia is proposing legal changes that might allow the federal government to control the availability of electricity to cryptocurrency miners. An announcement from the Ministry of Energy says cryptocurrency miners eat large amounts of electricity to always run high-powered computers while creating only a few jobs or economic opportunities.
The Proposed Legislative Amendments
The legislative amendments would allow the federal government to ban or restrict the supply of electricity to cryptocurrency miners because “unchecked growth” of the sector could make it difficult and more costly to supply electricity to homes and other businesses. The province directed the BC Utilities Commission in December 2022 to suspend recent electricity connections for cryptocurrency mining for 18 months.
Impact on Electricity Supply
Twenty-one projects, requesting a complete of 11,700 gigawatt hours of power per 12 months, were temporarily suspended from receiving power. This amount of electricity is greater than double what the brand new Site C dam will have the opportunity to generate. The proposed changes aim to make sure a stable and reliable electricity supply for the province’s residents and businesses.
Repeal of the Clean Energy Act
Proposed changes also include amendments to repeal sections of the Clean Energy Act used to create the previous government’s Standing Offer Program to purchase electricity. The statement says purchases under this system, which was suspended in 2019, were made at well above market rates.
Conclusion
In conclusion, the proposed legislative amendments in British Columbia aim to control the availability of electricity to cryptocurrency miners, ensuring a stable and reliable electricity supply for the province’s residents and businesses. The changes also seek to repeal sections of the Clean Energy Act and forestall the unchecked growth of the cryptocurrency mining sector. By regulating the sector, the federal government hopes to create a more sustainable and equitable energy system for all.
