Harsh sentiments reveal that the decision to not require crypto mining firms with cheap energy are politically motivated. Moreover, they say it is not in line with what the previous governments were seeking to accomplish and defy past plans by the energy firm.
Quebec Premier recently announced that anyone who intends to move cryptocurrency mining operations to the region will not get cheap electricity. This drew fury from head of the digital desk at Les Affaires, Francois Remy in one of his blogs.
He says the move results from an irresponsible impression of cryptocurrencies created general media and traditional economists. He adds that the new directive is not surprising given the government’s hostility to technology change. For instance, he says, the government even attempted to ban Uber and to tax web giants. Moreover, these moves appear to come from regulatory moves by the European Union.
The blogger says the current announcement goes against the previous efforts by the firm to attract companies exerting vast amounts of electricity. Hydro Quebec, which was targeting to double revenues to nearly $30 billion by 2030, said they recently received projects representing several thousands of megawatts.
Nevertheless, the government sent an order to await instruction about the matter of supplying cheap electricity to crypto mining firms establishing operations into the area.
According to the Quebec Minister of Energy Pierre Moreau, crypto mining companies do not generate many jobs even after requesting high amounts of electricity. According to Remy, for instance, projects seeking to establish mining operations in the area are requesting electricity amounts.
However 5,000 percent above that of average home consumption. The amount exceeds that of aluminum smelters in some cases. Smelters, in comparison, generate hundreds of jobs.
Thus, according to Moreau, the government will not tell residents that it won’t require electricity during peak winter use periods.
An entrepreneur in the area Jonathan Hamel echos the same harsh sentiments saying the Couillard government is undermining investment projects in Quebec. However he says companies have contingency plans to constitute operations in Alberta and other places.
He announced the move by Couillard government amounts to a “campaign of fear,” that contradicts what previous governments sought to achieve in the last 20 years.
He added that Bitcoin mining presents an incentive to use clean, renewable energy. Also the government’s claims are not factual but ideological.
Been target for firms from China
The move by the area authority is disheartening for firms that planned to move to the area. Thus including Chinese firms due to unfavorable conditions elsewhere. An example of those companies is Bitmain Technologies which maintain some of the largest mining farms in China. Nevertheless, China assumed a hostile attitude against these operations from last year.
The decision by the Quebec authority, according to the two above, is politically motivated.
For instance, Quebec Hydro said previously that there was energy surplus in the province. It is an equivalent of 100 Terawatt hours over ten years and therefore, the change was unexpected.
Markedly, the company said crypto mining firms were eyeing about a maximum of 300 megawatts of energy.