Last year, the region decided to stop accepting fresh cryptocurrency mining ventures to weigh limitations on their activities and determined to increase rates they shell out for power. The board also dismissed Hydro-Québec’s suggestion to make potential mining companies apply for new ventures.
After due consideration of the changing economic scenario, Régie de l’énergie, Quebec’s Canadian province’s energy regulator, has issued fresh regulations for cryptocurrency miners.
On April 29, main Canadian power company Hydro-Quebec announced the latest development. The Régie de l’énergie has instructed energy production company Hydro-Quebec to assign 300 megawatts (MW) to the blockchain sector. “Besides the 158 MW already granted to existing customers approved by Hydro-Quebec, this 300 MW will be granted to existing customers approved by municipal distributors,” the official statement further clarifies.
The miners will keep paying either 3.46 cents or 5.03 cents per kilowatt hour, plus additional costs, based on their regional utility contract. To obtain some of the specifically assigned power, firms must go through a vetting process in which they are rated on four metrics such as the number of jobs created in Quebec, cumulative payroll of direct jobs, investment value, and heat recovery. In the release, Hydro-Quebec says that the latest guidelines will allow the institution to defend customers’ low rates.
Canada has been acknowledged as a world leader in cryptocurrency based on technology, low power costs, high Internet speed and beneficial regulatory framework. Back in July 2018, Hydro-Quebec disclosed that over the past decade, the region had an abundance of energy, equivalent to 100 terawatt hours, and delivers at some of North America’s lowest electricity rates.
In June 2018, Hydro-Quebec suggested new rules requiring blockchain-related firms to make an offer for electricity and accurately predict their jobs and investment on a per megawatt basis.
Bitcoin mining takes up large amounts of energy since it uses computers to perform complex math math problems to verify cryptocurrency trades saved on blockchain or digital ledger. Bitcoin rewards the first miner to fix the issue and adds the trade to the blockchain.
Jonathan Côté, a spokesman of Hydro-Québec said “We don’t think we will have any trouble attracting projects.”
Lately, Innisfil, Canada, Ontario, declared that it is operating a pilot program that will allow citizens to pay Bitcoin (BTC) for property taxes with probable listing of other cryptocurrencies such as ether (ETH), litecoin (LTC), Bitcoin cash (BCH), and ripple (XRP) at a future date. In electricity-rich Canada, Bitmain Technologies and other businesses are planning to buy land parcels as cryptocurrencies appreciate and developing nations intend to abolish Bitcoin mining.