Hydro-Québec Ordered to Supply Power for Cryptocurrency Mining
In a surprising turn of events, Hydro-Québec has been directed by the Régie de l'énergie to sign an agreement for power supply with Énergie Flumen, a Quebec-based company planning to set up a cryptocurrency mining farm in Saint-Antonin, near Rivière-du-Loup. This decision, revealed by La Presse, marks a significant development in the ongoing debate over the allocation of electricity for energy-intensive cryptocurrency operations.
The Régie de l'énergie’s mandate requires Hydro-Québec to provide a substantial 20 megawatts of electricity to Énergie Flumen. This amount of power is equivalent to the consumption of around 10,000 households. The decision comes after a nearly year-long dispute, during which Hydro-Québec had refused to finalize the connection agreement, citing the strained energy context of the province.
Also Read:- Exploring Bruny Island's Rich Culture and Natural Beauty onGreat Australian Walks
- Netflix’s "Monsters: The Lyle and Erik Menendez Story" Sparks Outrage Over Title Choice
Hydro-Québec's spokesperson, Maxence Huard-Lefebvre, expressed concerns about the decision, highlighting that the allocation of such a significant portion of electricity to the cryptocurrency sector could jeopardize energy availability for other critical projects, including those aimed at decarbonization. The company plans to appeal the decision, arguing that it involves serious errors and questioning whether the Régie has the authority to enforce such agreements.
The controversy surrounding cryptocurrency mining and its energy consumption is not new. As early as November 2022, Hydro-Québec had raised alarms about the risks associated with increasing electricity demands from cryptocurrency operations. At that time, the company noted that such consumption could threaten the reliability and security of the energy supply network. Hydro-Québec had previously requested an urgent suspension of the 300-megawatt block of energy reserved for this sector, a move that faced strong opposition from major players like Bitfarms and HIVE.
Currently, the cryptocurrency sector consumes about 2 terawatt-hours of electricity, roughly equivalent to the energy use of 100,000 homes in Quebec. This situation has sparked debates about whether the general population should bear the cost of supporting such high-energy-demand projects. Experts like Pierre-Olivier Pineau from HEC Montréal acknowledge the difficulty in regulating energy use based on its application, while also suggesting that alternative solutions, such as involving private energy projects, could mitigate some issues.
In response to the Régie’s decision, Hydro-Québec is set to appeal, emphasizing the need for more refined tools to make collective decisions regarding energy resource allocation. The company argues that the Régie’s ruling could have broad implications for the future management of Quebec’s energy resources, especially in light of ongoing and anticipated demands from various sectors.
This latest development underscores the tension between the rapid growth of energy-intensive industries like cryptocurrency mining and the need for careful management of energy resources to ensure sustainable and reliable supply for all sectors.
Read More:
0 Comments