Government of Quebec has finally woken up by putting a stop on cryptomining in Quebec by temporary suspending sale of electricity to miners of crypto currencies.
Quebec’s super cheap hydro rates attracted hundreds of crypto-miners from around the world. China and South Korea have recently banned mining and threaten companies to cease all operations.
As recently as few years ago Hydro Quebec was looking to get potential clients to come to Quebec. But now it seems they have to turn away clients. Crypto miners are seeking 15,000 megawatts which accounts for over 40% of Hydro Quebec capacity and Hydro Quebec states that is not feasible for them to sell so much.
Hydro Quebec recommends only 500 megawatts to be allocated for crypto miners.
Régie de l’énergie, the Quebec’s energy board, need to come up with rules how to allocate thousands of megawatts being requested by crypto miners. Should they allow unlimited energy, limit it or restrict it all together?
If all requests from crypto miners are accomodated, Hydro Quebec would need to buy extra power or build new capacity, therefore increasing rates for all Quebecers.
Hydro Quebec spokesman Jonathan Cote said in an interview with Globe and Mail:
”If we had to build new capacity or buy extra power, then the rates for everybody in Quebec would go up because of this. This is something that we can’t accept. We need to protect the rates of all our customers.”
Provincial government and Hydro Quebec recommend crypto projects are selected on how many jobs would be created and price for power. They also recommend limiting power sold during winter months when most energy is used.
Hydro Quebec has already refused to support any BitCoin operations since they don’t contribute at all to the Quebec economy i.e. no jobs, no products, no services.
— François Caron 🇨🇦 (@Milnoc) June 7, 2018
The study will be concluded pretty quickly as early as September since Quebec does not want to lose out on such lucrative business opportunity.