On Thursday 07 June, Canada’s Quebec region announced that it will not approve any cryptocurrency mining projects, until it sets new regulations on their operations.
According to the announcement, Hydro Quebec, the power generator which is owned by Quebec government issued a statement stating that,
“Will ask the province’s energy board to quickly determine how much it should charge digital currency miners. And determine how much energy should be allocated to the industry while addressing the need to maximize revenues and job creation”.
The power generator firm has also enquired the Quebec to reduce the total power enabled to all crypto miners. Therefore to a block of 500 megawatts, a energy consumption on a single aluminum smelting plant.
However, this is due to Hydro Quebec undergoing “unprecedented” demand from blockchain companies that surpasses its short and medium capacity. Respectively, the power generator will file an application to local energy regulator proposing a selection process for blockchain industry projects. Later on the regulators will reportedly target companies that can offer profitable economic advantages including investments and local job creation.
Regie de l’energie, the Quebec regulator will be instructed to “the need for a reserved block of energy for this category of consumers. The possibility of maximizing Hydro-Québec’s revenues, and issues related to the winter peak period”.
Eric Filion, president of Hydro-Quebec Distribution, said in the statement,
“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. However 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”.
Accordingly, the Quebec government deviates from decision to lift ban on cryptocurrency mining firms to sell electricity with new consent. The country holds the second populous region in search of cheap electricity. The announcement point towards government’s intention to build a measured relationship with mining companies.