Crypto

Quebec Energy Manager To Cut Supply For Crypto Mining Due To Shortage | bitcoinist.com

Cryptocurrencies are generated through a process known as crypto mining which consumes a lot of electrical energy. And higher energy consumption has consequently led to power shortages in several regimes due to increased mining activities.

Quebec, a Canadian province, faces similar problems. And now the interim power supplier wants to cut off power sources for miners to survive winter when the lowering temperature forces residents to use space heaters and other electrical gadgets to survive.

In this regard, the electricity management company Hydro Quebec, which controls, produces and distributes electricity in the province of Quebec in Canada, deposit a report to the energy council on 1 November. The distributor in the report asked the government to allow the hydroelectric plant to limit the energy supply to crypto miners.

Highlighting the reason for the need to reduce the powers for crypto-mining operations, Hydro-Quebec expressed concerns about the “reliability and security” of electricity for Quebec residents. Moreover, the company had already taken into account the demand for electrical energy via cryptocurrency, greenhouse agriculture and green hydrogen.

At the request of Hydro-Québec, Pierre Fitzgibbon, Canadian politician and legislator, tweeted on November 3 to express its support at the request of Hydro Quebec.

However, he said the government would ask the energy council to release the platform from its obligations to supply energy to crypto-mining farms. The company allocates 270 MW of electricity to mining rigs based on current liability. In addition to this amount of electricity supplied, the demand for energy in the crypto sector continues to increase, putting the energy supplier under pressure.

Bitcoin price is currently hovering above $21,000. | Source: BTCUSD price chart from TradingView.com

Energy demand for crypto mining will continue to rise

The report revealed that the energy demand for crypto-mining activities will continue to grow as digital assets gain traction every day. According to Growth in electricity demand will continue in Quebec report, the highest demand for mining energy is 0.7 terra watts per hour (TWh) over a ten-year period, which is expected to occur in 2028.

Hydro-Quebec added;

The additional energy requirements in winter are high, and this without the addition of the load linked to the block balance reserved for cryptographic use applied to blockchains. Energy purchases are expected to be close to 3 [terawatt-hours] in winter from 2025 and even exceeding 3 TWh in 2027.

Additionally, mining companies under the regime have been paying additional taxes on their operations to the Quebec government since March 2021. While the government is seeking to control the burden on the power grid, it is also providing options to expand mining activity.

The province of Quebec does not seem to be the first to experience electricity management problems due to cryptocurrency mining. For example, Kosovo and Iran faced an energy crisis. Notably, authorities in Iran have become aggressive upon seeing the critical issues and a previous report reveals that police confiscated more than 9,000 mining machines through August.

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